Mumbai: Global uncertainty and a softer initial public offering (IPO) market are pushing more companies toward private market transactions, even though investors take longer to close deals amid a sharper scrutiny of valuations and earnings resilience, a senior executive at Deloitte South Asia said.
“There may be more activity but fewer deal closures in the near term,” Rohit Berry, president-strategy, risk and transactions-at Deloitte South Asia said in an interview with Mint.
While companies continue to believe in India’s long-term growth story, many are choosing to wait out the current turbulence before tapping public markets, creating opportunities for private equity, private credit and strategic investors. “A difficult or an uncertain may not be bad news for private M&A (merger and acquisition), private equity or private credit-led transactions,” Berry told Mint.
IPO market slowdown
Domestic mutual fund inflows have cushioned Indian equities from a sharper fall, but the Iran war-led volatility has prompted many companies to reassess listing plans, bringing some of them to the private markets.
Flipkart and PhonePe, for instance, have reportedly deferred their IPO plans amid the ongoing market uncertainty. In May, that new issues by yield-generating real estate and infrastructure investment trusts continue to find takers amid steady cash flows and investor demand for predictable returns, at a time when the volatility in equity markets have led to several initial public offers being pulled back.
Despite these uncertainties certain large listings of are expected to happen in the June-July period, laying groundwork for IPO activity for the second half of the year. Other companies including Zepto, National Stock Exchange, Reliance Jio, are also evaluating a listing timeline.
This follows a period when even small and mid-sized companies raising less than ₹2,000 crore increasingly opted for public listings as market valuations outstripped those available in private markets.
“When the IPO market was very robust, everybody was going for IPOs. Even people who would have otherwise considered a private deal said ‘let’s go to the public market’. Some of that will take a backseat now,” Berry said.
Pace, not deal appetite, has slowed
However, he emphasized that the slowdown is affecting the pace of transactions, rather than the underlying appetite for deals. “Good-quality assets will find capital, buyers, investors or strategic partners,” Berry said, adding that sectors such as healthcare, financial services, and infrastructure continue to enjoy strong structural demand drivers.
While deal activity remains healthy, investors are spending more time evaluating risks and earnings resilience before committing capital. “Deals that earlier got completed in four months or eight months may now take longer. Everybody is watching how companies’ P&Ls absorb this uncertainty,” he said.
The shift is already visible in dealmaking data. According to EY’s India M&A report, merger and acquisition value reached $63.1 billion across 1,206 deals in 2025, up 26% by value despite a decline in volumes on the back of big deals like ONGC NTPC Green’s $2.25-billion acquisition of Ayana Renewable Power, JSW Energy’s $1.84-billion acquisition of KSK Mahanadi Power, and Torrent Pharmaceuticals’ $1.48-billion acquisition of JB Chemicals & Pharmaceuticals, among others.
However, Grant Thornton Bharat’s Q1 2026 Dealtracker showed M&A deal value fell sharply to $6.9 billion from $17 billion, despite volumes remaining broadly steady at 271 transactions, compared with 277 deals in the preceding quarter as the number of high-value transactions slumped. Deals valued at more than $100 million fell nearly 60% quarter-on-quarter, the report said.
Despite growing uncertainty, large-ticket transactions in sectors such as financial services, healthcare and infrastructure are unlikely to be shelved.
“While transactions may take more time to close, the deals themselves will continue to happen,” he said, adding that the strategic rationale underpinning most large transactions remains unchanged.
To be sure, Deloitte has shifted its focus in M&A advisory to deals above $250 million in value after the firm brought in Berry from KPMG as president of the vertical about two years ago, the Economic Times reported in March. Berry’s move to Deloitte was followed by two other senior executives from KPMG, Vivek Gupta and Manish Aggarwal. Over 200 executives moved from KPMG to Deloitte following Berry’s move.
Most recently, the firm acted as an exclusive adviser to Torrent Power Ltd for the $759 million acquisition of Nabha Power Ltd announced in February.
According to him, investor appetite remains particularly strong for sectors with robust underlying demand. “For example, a good hospital asset will continue to attract strong interest because the fundamentals of the healthcare sector remain intact,” he said.
“Infrastructure, financial services, healthcare and agri-related industries could become the sectors that help sustain and drive India’s M&A market in the current environment,” he added.
Valuations slow down deal closures
At the same time, investors are becoming increasingly selective on valuations.
As public market multiples fluctuate, buyers are becoming more cautious about paying prices driven by previous market exuberance, while sellers remain reluctant to accept steep discounts if they believe business fundamentals remain strong.
“If the price discovery process does not reflect the fundamental strengths of the business and what the business would have commanded under more normal conditions, many sellers will simply choose to wait,” Berry said.
Despite concerns around inflation, energy costs and supply-chain disruptions, he does not expect distress-driven transactions to become a dominant feature of the market.
“We are not seeing widespread distress,” he said, noting that many Indian businesses have become more resilient after navigating previous crises, including the pandemic. “Good quality assets, even outside India, are expected to continue attracting interest from Indian investors, as seen in the past as well”, he added.