PE investment during Jan-Mar rose 30% to $2.09 billion: Thornton

Private equity investments in India jumped by 30.06% to $2.09 billion in the first three months of 2014 compared to the year-ago period, says a report by Grant Thornton.

There were PE deals amounting to $1.6 billion in the same period last year.

There was a significant increase in terms of deal volume also, as there were 133 deals in the first three months of this year against 90 transactions in the January-March 2013.

"There is an emerging upward trend in PE Investments seen both in terms of value and volume, with 51% deal volume from PE/VC investments alone," the report said.

A sector-wise analysis showed that the top sector in PE both in terms of value & volume was IT & ITeS which witnessed 34% ($717 million) of overall deal value and 41% (54 deals) of overall deal volume.

"Technology has always been active in deal-making and this is expected to continue with continued thrust by Indian companies. While the domestic orbit is slightly passive at present, it is certain to get a headway post elections," Grant Thornton Partner Harish HV said.

In the month of March, as seen through the last two months, PE investment continued to show an upward trend at $597 million (47 deals) against $589 million (27 deals) in 2013.

Going forward, if a stable government is elected in, sentiment may improve further but the real uptick in the PE activity would happen provided there is change in the macro conditions.

"PE Industry outlook is moderately positive. Deal flow will continue to be limited; fund raising environment will continue to be challenging till there is visible change in the Indian macro conditions," Reliance Private Equity CEO Ramesh Venkat said.