Private equity investments in India touch USD 6.3 bn

Private equity investments in India touched a whopping USD 6.3 billion in the first six months of this year, with the IT and ITeS sector attracting the maximum number of deals, a study says.

In the April-June quarter this year USD 2,916 million was invested across 112 deals, while last quarter saw an infusion of USD 3,361 million across 91 deals, according to a study by Venture Intelligence, a research service focused on Private Equity and M&A transaction activity in the country.

Though quarter-on-quarter there has been a decline in PE investments, year-on-year there was a significant jump of 45% as private equity firms had invested USD 1,988 million through 70 deals in the April-June quarter last year.

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The largest PE investment during the second quarter of this year was the Rs 2,250 crore commitment by Apollo Management to various group companies of Welspun Group.

Other top investments reported during the quarter under review include commitments of about USD 150 million each for thermal power generation firm Diligent Power (by Warburg Pincus), hotel management and investment firm Samhi Hotels (by GTI Group) and airports operator GMR Airport Holdings (by StanChart PE, Old Lane and JM Financial), the report said.

A sector-wise analysis shows that the IT & ITES industry received the most number of investments during the second quarter of this year as this space attracted 34 deals worth USD 325 million, followed by BFSI (12 deals worth USD 275 million).

"Led by the Rs 65 crore (USD 14.4 million) third round of funding for Janalakshmi Financial Services, the Microfinance sector staged a come back of sorts during the period," the report said.

Meanwhile, the second quarter of this year saw 15 exits including one IPO (that of Sequans Communcations).

Reliance Venture exited from France-based 4G chipmaker Sequans Communications via the company's NYSE listing.     

Among exits via M&A, the acquisition of BPO firm Intelenet for USD 632.5 million by Serco provided Blackstone its first exit it in India.

In the June quarter last year there were 25 exits (including 4 IPOs) , while there were 16 exits (including 1 IPO) in the first quarter of this year, the study said.