In today’s globalised economy, the main objective of every firm is to make profits and enhance shareholders wealth. In the global market, number of companies among Indian Pharmaceuticals, have entered into Merger and Acquisition agreements The objective of the study is to evaluate the impact of Merger and Acquisition on the Liquidity position of selected pharmaceutical companies. For the present study, 8 pharmaceutical companies listed under Bombay Stock Exchange (BSE) which involved in M&A activities in India after recession period ie., after 2007. The analysis is based on the various liquidity ratios are compared between pre and post-event periods. Other statistical tools Mean, Standard Deviation, Co-efficient of Variation and Paired ‘t’ test have been used in this research.