Mumbai: Private equity deals in India fell by more than a fifth to $2.8 billion in the June quarter from the previous three months, as a wobbly stock market dented demand, an independent industry tracking firm said on 10 July.
Seventy-seven deals were done in April-June, far lower than 115 deals in the March quarter for $3.6 billion, Venture Intelligence said in a statement.
It said private equity investments totalled $6.3 billion in the first half of 2008, above $5.4 billion in the same period last year when 74 deals were done in the June quarter for $1.9 billion.
India’s main share index fell 18% in June, the biggest monthly decline in 16 years, and took losses in the first six months to a third.
The tracking firm said there was big decline in deals in financial, engineering and construction firms, while power and telecom continued to attract large investments.
“The positive surprise this year has been the re-emergence of healthcare and life sciences on the radar screens of PE investors,” Arun Natarajan, CEO of Venture Intelligence, said.
The largest investment in the June quarter was $640 million raised by Aditya Birla Telecom, a unit of Idea Cellular, from Providence Equity Partners, the tracker said.
Despite shaky market conditions, more than $2 billion were for PE investments in India during the June quarter, with infrastructure-focused offerings from 3i and Axis Bank leading the pack, it said