India Inc sees PE-deals worth $1.19 bn in Feb: Grant Thornton

Momentum in PE investment activity strengthened as the values increased 62% y-o-y

Private equity deals worth $1.19 billion were announced in February, registering a jump of 62% over the corresponding period last year, largely driven by big ticket investments, says a report.

According to the assurance, tax and advisory firm, Grant Thornton, there were 94 PE-deals worth $1.19 billion in February, while in the corresponding period last year there were 73 such transactions worth $737 million.

Momentum in PE investment activity strengthened as the values increased 62% year-on-year, due to four large investments above $100 million each (compared to only one such deal in February 2015), the report said.

The total PE-investments in the first two months of this year amounted to $2.31 billion through 191 deals, a jump of 23% in value terms over the same period last year.

"PE deals saw a healthy 23% year-on-year increase with large investments in sectors like IT & ITeS, BFS, infrastructure and pharma, healthcare and biotech," the report added.

A sector-wise analysis showed that PE/VC investments in IT & ITeS exhibited significant traction and contributed 70% of total deal volumes. Within this sector, the e-commerce space continued to dominate PE/VC interest with around 70% of IT&ITeS investments in this month.

Apart from IT & ITeS, banking & financial services and infrastructure also witnessed big ticket deals worth over $100 million.

The top PE-deals during the month include, internet and media firm Naspers' $250 million investment in online travel services provider ibibo Group and $200 million investment by Ontario Teachers' Pension Plan, Brother Fortune Apparel, and Iron Pillar in Jasper Infotech.

According to Prashant Mehra, Partner at Grant Thornton India, the nine transformative pillars of the economy -- agriculture and farmer welfare, rural employment, social welfare, education and job creation, infrastructure and investments, financial sector reforms, ease of doing business, fiscal discipline and tax reforms would set the wheels rolling for increase in consumption, investment and development.

"If the thrust on implementation is as rigorous as planned, we are set for some exciting times in the deal market this year," Mehra added.