Author
Harsh Batra
Harsh Batra
Despite a robust 2025 for private equity, a newly published LSEG report suggests 2026 has started on the wrong foot for Indian M&A.
The report points out that global uncertainty has triggered a sharp decline in both value and volume. Total dealmaking involving India reached USD 17.4bn in the first quarter of 2026, down 44.5% YoY. The number of announced transactions also fell 30.4%, making it the slowest first quarter for deal activity since 2021.
LSEG ranks the Royal Challengers Sports deal and Macquarie’s Infrastructure Fund 2 among the standout transactions of the quarter. There were just five deals above USD 1bn, totalling USD 6.5bn. In the same period of 2025, there were seven such deals, worth a combined USD 15.4bn. In 2026, the sectors leading activity are Tech, Infrastructure and Consumer.
Highlights from this edition include:
- Torrent Power moved a step closer to buying Nabha Power after securing CCI clearance for the ₹6,889 crore acquisition, adding a sizeable thermal asset to its generation platform.
- Max Healthcare agreed to acquire a 58.4% controlling stake in Kalinga Hospital for ₹300 crore, giving it an immediate entry into Odisha through a 250-bed multi-speciality asset in Bhubaneswar.
- MUFG Bank acquired a 20% stake in Shriram Finance for ₹39,618 crore, in what has been described as the largest cross-border investment in India’s financial-services sector. The deal gives the Japanese lender a meaningful position in one of the country’s best-known non-bank credit platforms.
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Deal Tracker
Rumour mill
- The government may ask Fairfax and Emirates NBD to sharpen their offers for IDBI Bank, after initial bids reportedly came in below the reserve price and prolonging a privatisation process that has repeatedly stalled.
- BNP Paribas Cardif’s pursuit of Warburg Pincus’s stake in IndiaFirst Life has run into fresh friction, with Union Bank of India’s exit from its corporate agency arrangement complicating the path to closing.
- True North and TA Associates have revived plans to sell ACT Fibernet, reopening a process that could value the broadband operator at around US$1bn as sponsors test appetite for another sizeable India PE exit.
- IHH Healthcare wants to raise its stake in Fortis to 50% over time, reinforcing India’s place at the centre of the hospital group’s regional growth strategy.
- Xponentia Capital may extend the life of its first fund as it works through remaining exits, reflecting the longer monetisation cycle still facing private equity portfolios.
- ChrysCapital is said to be in the final stages of backing an Indian drugmaker, in what could become another healthcare bet by the homegrown private equity firm.
- The government is considering ways to retain majority control of a merged PFC-REC entity, as restructuring plans advance for the two state-owned NBFCs.
- Tata Capital Healthcare Fund has begun selling its stake in a portfolio company, pointing to renewed exit activity in India’s healthcare private equity market.
- India’s Supreme Court has refused to halt Adani’s acquisition of Jaiprakash Associates, leaving Vedanta to continue its challenge through lower forums.
- Zaggle has dropped its planned acquisition of a majority stake in EffiaSoft, stepping back from a transaction it had once positioned as strategically useful.
- Nykaa has confirmed talks to buy a stake in Deepika Padukone’s skincare brand 82°E, as it keeps expanding its portfolio through targeted beauty acquisitions.
Job moves
- Bay Capital has hired Tej Kapoor, formerly of Naspers, and Sandeep Barasia, formerly of Delhivery, to help lead its new India Digital Opportunities Fund, marking the firm’s push into late-stage digital investing.
- Ares has appointed former Goldman Sachs executive E.G. Morse to lead Asia Credit, as the alternative asset manager looks to scale its credit platform further across the region.
- TR Capital has brought in a former Eight Roads executive to lead its India operations, signalling continued momentum in the country’s growing secondaries market.
- Campbell Wilson, Air India’s chief executive, has stepped down in a senior leadership change that comes as the Tata-owned carrier continues its integration and restructuring effort.
- Anthropic has hired Amlan Mohanty to lead policy in India, underlining the country’s growing importance in the AI group’s international expansion plans.
- Encube Ethicals has promoted Pratik Kamani to chief executive, as the Quadria-backed drugmaker reshuffles leadership while weighing its next capital markets move.
- YES Bank’s new chief executive Vinay Tonse has taken charge with a four-pillar growth plan, as the lender looks to sharpen execution across products, people, processes and technology.
- Tessolve has appointed former HCLTech executive Ravi Kumar Chirugudu as president and COO, in a move aimed at strengthening its engineering scale and growth strategy.
- ServiceNow has named former SAP and Adobe executive Kulmeet Bawa to lead India and SAARC, as it looks to deepen its enterprise push in the region.
- Coforge has appointed Sunil Fernandes as chief operating officer, handing him a mandate to strengthen delivery and accelerate the use of AI across operations.
- PFC has appointed Rajiv Ranjan Jha as its nominee director on REC’s board, in a governance move that comes amid closer alignment between the two state-backed lenders.
- YRF Entertainment has hired former SonyLIV executive Saugata Mukherjee to head content, as it builds out its streaming ambitions with a stronger original programming focus.
IPOs
- Slice is said to be exploring a fresh funding round, while Leverage Edu has reportedly started working with bankers on a potential IPO.
- One Hand Clap has acquired Agenseed to move into distribution, broadening its model beyond creative production as agencies look for more integrated revenue streams.
- SEBI has granted one-time relief on IPO timelines and public float requirements, offering issuers more room as market conditions remain uneven.
- Practo is expanding its leadership team ahead of a potential IPO, suggesting preparations are gathering pace for a public market run.
- India saw a sharp rise in March IPO filings, with 38 companies submitting draft papers in a sign that issuer confidence is holding up.
- Powerica debuted below issue price, adding to evidence that public market appetite remains selective even as the IPO pipeline stays busy.
- Amir Chand Jagdish Kumar also listed at a discount, extending the recent pattern of weak aftermarket performance among smaller IPOs.
Fundraising
- Permira has invested about $100 million in SILA for a roughly 40% stake, backing the tech-enabled real estate services group.
- Aye Finance is said to be in talks to raise fresh capital from an offshore investor, adding to signs that private credit and NBFC fundraising remain active in India.
- Nava, Astranova Mobility and DAAKit have each secured fresh early-stage funding, extending the recent run of capital into AI infrastructure, EV finance and last-mile logistics.
- Magicpin has raised venture debt from Stride Ventures, opting for non-dilutive capital as it steps up investment in AI.
- Flipkart has tapped Hemant Badri to lead its AI push, as the Walmart-backed group starts shaping its next phase of growth around artificial intelligence.
- InCred Alternatives has reached the final close of its first special opportunities fund, adding firepower to pursue stressed, structured and opportunistic deals.
- JIIF plans to deploy up to ₹100 crore into early-stage startups over the next 12 to 18 months, pointing to sustained appetite in India’s seed ecosystem.
- EV fleet operator TrEV has secured its first external funding round, adding early backing to its push in electric mobility.
- Groww has launched an arbitrage fund aimed at low-volatility returns, broadening its product suite as competition intensifies in asset management.
