New Delhi: India witnessed a significant increase in private equity (PE) investments as transactions worth nearly $3 billion (Rs14,000 crore) were announced in the first half of this year, signaling a recovery in the economy, a report by Grant Thornton has said.
PE investments have already shown reasonable growth in the second quarter of 2009 compared to the previous quarter. Besides, the second quarter of 2009 has indicated several signs of recovery in the economy, which have led to an increase in the interest in merger & acquisitions (M&A) and PE, the report said.
The total number of PE deals announced during the first half of 2009 stood at 93 with a total announced value of $2.89 billion, it said.
Though this year’s PE deal value for the first half represented a 58% drop over the corresponding period of previous year, but still there are visible signs of recovery as the deal volume in Q2 2009 is showing signs of improvement when compared with the previous quarter, the report said.
Harish H V, Partner at Grant Thornton, said: “The indications of recovery combined with an increased availability of finance seem to have increased the appetite of India Inc for M&A and PE investments.”