Deal activity in India cooled in May 2026 from an exceptionally strong April, with 196 transactions worth USD 11 billion, a report said on Monday.
Excluding public market activity, the month witnessed 190 M&A and PE deals worth USD 10.2 billion, marking an ease of 10 per cent in volumes and a 53 per cent ease in values compared to the previous month.
Large-ticket deals continued to shape monthly totals despite a pullback in overall volumes and values.
The month’s volume was supported by two billion-dollar transactions, one each in M&A and private equity, which together contributed USD 4.6 billion and accounted for nearly 42 per cent of total deal value.
“May deal activity was similar to April volume and values, indicating sustained momentum and resilience in the deal market in the backdrop of continued global uncertainty,” said Shanthi Vijetha, Partner, Deals Lifecycle, Grant Thornton Bharat.
“Average deal values have seen an uptick as there is an increased strategic intent in M&A among domestic large corporates (14 deals above USD 50 million), alongside a strong appetite for high-value fund raises from private equity (14 deals USD 50 million),” Vijetha said.
Overall, the deal market continues to show consistency in participation as capital remains focused on strategic relevance and high value opportunities, she added.
M&A activity remained steady during the month, with 76 deals worth USD 6.3 billion. While domestic transactions continued to anchor deal volumes, cross-border activity drove value creation.
Domestic M&A activity accounted for 61 per cent of overall deal volumes, reflecting continued strategic consolidation across sectors.
Private equity activity recorded 114 deals worth USD 3.9 billion, with aggregate deal values reaching their highest monthly level of the year.
Public market activity remained subdued in May 2026, with two IPOs raising USD 214 million, reflecting a cautious primary market environment.
QIP activity remained steady, with four issuances collectively raising USD 568 million, indicating continued preference among listed companies for institutional fundraising amid evolving market conditions. Together, IPOs and QIPs contributed USD 782 million to the overall transaction value during the month.
Retail & Consumer remained the most active PE sector by volume, recording 30 deals worth USD 444 million, reflecting sustained investor interest in consumer-facing businesses and growth-stage brands.
Banking & Financial Services continued to attract strong investor interest, ranking among the top sectors by both volume and value.
Manufacturing maintained strong strategic momentum, emerging as the joint leader in M&A volumes with 14 deals alongside the pharma sector.
