Deloitte's Rohit Berry explains how the IPO slowdown is pushing companies to private markets. Deal timelines extend as valuation scrutiny rises. Key sectors: healthcare, financials, infrastructure.
Rohit Berry, president-strategy, risk and transactions at Deloitte South Asia, said global uncertainty and a softer IPO market are pushing more companies toward private market transactions. Investors are taking longer to close deals as they scrutinize valuations and earnings resilience more sharply. “There may be more activity but fewer deal closures in the near term,” Berry told Mint.
The simple read of the IPO slowdown is that capital markets are freezing. The better market read is that capital is rotating into private equity, private credit, and strategic M&A, with extended timelines as the cost of the rotation. “A difficult or an uncertain IPO market may not be bad news for private M&A, private equity or private credit-led transactions,” Berry said.
Companies that would have rushed to list during the 2024 IPO boom are now reconsidering. Flipkart and PhonePe have reportedly deferred their IPO plans. Zepto, National Stock Exchange, and Reliance Jio are still evaluating timelines without committing to near-term listings. Berry described the reversal: “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.”
Not all public market activity has stopped. SBI Funds Management and Manipal Health are expected to list in June-July, which could lay groundwork for a second-half IPO recovery. The broader trend, however, is a shift toward private transactions.
The slowdown affects pace, not appetite. Berry emphasized that good-quality assets will still find 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.
As public market multiples fluctuate, buyers are becoming more cautious about paying prices driven by previous exuberance. Sellers are 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.
Berry identified three sectors with structural demand drivers that are likely to sustain deal flow:
“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,” Berry added.
Aggregate M&A data shows a split between value and volume. According to EY's India M&A report, total deal value reached $63.1 billion across 1,206 deals in 2025, up 26% by value despite a decline in volumes. The increase was driven by mega-deals such as 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.
Grant Thornton Bharat's Q1 2026 Dealtracker tells a different near-term story. M&A value fell sharply to $6.9 billion from $17 billion in the preceding quarter, even though volumes remained broadly steady at 271 transactions versus 277. Deals valued at more than $100 million fell nearly 60% quarter-on-quarter.
| Metric | Q4 2025 | Q1 2026 | Change |
|---|---|---|---|
| Total M&A value | $17 billion | $6.9 billion | -59% |
| Deal count | 277 | 271 | -2% |
| Deals > $100 million (est.) | ~30 | ~12 | -60% |
Berry does not expect distress-driven transactions to dominate. “We are not seeing widespread distress,” he said, noting that Indian businesses have become more resilient after navigating previous crises, including the pandemic.
For investors tracking Indian equities and private markets, the key takeaway is that the IPO pipeline is not dead. It is delayed and selective. Companies with strong fundamentals will eventually list, the timing is uncertain. Meanwhile, private credit and private equity are absorbing demand that would have gone to public markets.
Deloitte has shifted its M&A advisory focus to deals above $250 million after Berry joined from KPMG about two years ago, bringing over 200 executives with him. The firm recently advised Torrent Power Ltd on its $759-million acquisition of Nabha Power Ltd announced in February. This move signals that the advisory market is also consolidating around larger, more complex transactions.
For a broader view of how capital is rotating across asset classes, see our stock market analysis and the recent piece on AI Startups Outgrow Venture Capital as Hyperscalers Take Over Funding.
The next concrete catalyst to watch is the June-July listing window for SBI Funds Management and Manipal Health. If those deals price successfully, it could reopen the IPO window for second-half 2026. If they struggle, expect more companies to follow Flipkart and PhonePe into the private market.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.