Article’s

Non-banking financial companies (NBFCs) have shifted from the fringes of India’s financial system to its core, and from 2021 to 2026 a distinctive series of mergers and acquisitions (M&A) altered their ownership and structure. Using a multiple-case design built on secondary data, this paper studies nine landmark transactions: Piramal–DHFL, Poonawalla–Magma, the formation of Shriram Finance, the HDFC Ltd–HDFC Bank and IDFC–IDFC First Bank reverse mergers, Tata Motors Finance–Tata Capital, Reliance Capital–IIHL, Bain Capital–Manappuram and MUFG–Shriram Finance. The findings show that dealmaking has moved away from distress resolution under the Insolvency and Bankruptcy Code (IBC) and towards strategic consolidation and the entry of foreign capital, propelled by scale-based regulation, compulsory listing of upper-layer NBFCs, cheaper funding and investment in technology. Results after the deals vary: Shriram Finance and Poonawalla Fincorp grew their assets quickly while keeping asset quality steady, HDFC Bank endured sustained pressure on margins and low-cost deposits, and Tata Capital saw its asset quality weakened by the vehicle-finance book it absorbed. Approval delays and integration risk are the chief obstacles. It closes with policy suggestions on approvals, IBC implementation, prudential relief and disclosure.