India M&A, PE deals drop to $10.2 billion in May after April spike

A total of 190 mergers and acquisitions (M&A) and private equity (PE) deals worth $10.2 billion were recorded in May, compared with 212 deals valued at $21.8 billion in April. The sharp decline in overall deal value was largely because April included Sun Pharma’s $11.8 billion acquisition of US-based Organon.

Excluding this outlier, overall deal values remained largely stable on a month-on-month basis, indicating continued momentum in underlying deal activity despite lower reported volumes, says Shanthi Vijetha, Partner, Deals Lifecycle, Grant Thornton Bharat.

M&A activity saw the steepest decline, with deal volumes falling 26% month-on-month to 76, while values declined 66% to $6.3 billion. Despite the drop, May recorded the second-highest monthly M&A value of the year, supported by continued large-ticket deals.

Cross-border acquisitions remained the primary driver of M&A deals. Outbound transactions accounted for 76% of total M&A value, led by Bharti Airtel’s nearly $3 billion increase in stake in Airtel Africa. Inbound deal activity was also strong, with Prudential’s acquisition of a 75% stake in Bharti AXA Life Insurance.

Private equity activity, meanwhile, remained resilient. PE deal volumes rose 5% month-on-month to 114 transactions, while total value increased 25% to $3.9 billion. However, the increase was concentrated in a handful of large deals.

The biggest deal was a $1.64 billion investment in Rajasthan Royals that involved a change in ownership and accounted for 42% of all PE deal value during the month. Excluding this deal, overall PE investments would have declined compared to April.

Besides this, five high-value deals of more than $100 million were recorded during the month, collectively contributing $1.2 billion, highlighting investors’ growing preference for fewer but larger bets.

Sectorally, retail and consumer as well as banking and financial services led deal volumes. However, media and entertainment emerged as the largest contributors by value, driven by certain key deals. The month also saw the emergence of the fifth unicorn of 2026, with Skyroot Aerospace raising $60 million, while Rapido secured a $240 million funding round.

In the public markets, IPO activity remained muted with 2 issuances raising $214 million, while QIPs remained stable with 4 issuances totaling $568 million, the report added.