Mumbai: Private-equity (PE) firms invested $2.5 billion in India in 97 deals between July and September, putting in more money per transaction than a year ago, shows a new study.
In the third quarter of 2011, PE firms had invested $2.4 billion across 121 deals. In the latest quarter, the information technology (IT) and IT-enabled services sector maintained it’s position as the top attraction for PE firms, drawing $1.3 billion in investments in 45 deals.
The findings are part of the third PwC MoneyTree India report, a quarterly study of PE investment activity based on data provided by Venture Intelligence.
“With the year having entered into its last lap, it is quite unlikely that PE investments in 2012 will be on par with those in 2011,” said Sanjeev Krishan, leader, private equity, PricewaterhouseCoopers India. “However, as we approach the year-end, the sentiment seems to be reviving and this augurs well for 2013.”
Krishan said the opening up of multi-brand retail to foreign investment is expected to generate investments in due course, and the requirement for 50% investment in back-end operations and 30% procurement from small and medium enterprises will boost private equity investments in the logistics, agri and food and consumer goods sectors.
Companies in the national capital region received the highest level of funding in the September quarter, surpassing Mumbai, with investments worth $1.3 billion from 26 deals.
In terms of PE exits, there was an 81% increase in value in the latest quarter—to $1.5 billion from 26 deals compared with exits worth $809 million from 25 deals a year earlier.