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Business News/ Opinion / Online-views/  Private equity investment activity in May sees decline
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Private equity investment activity in May sees decline

Investments in May stood at $904 million from 43 deals, as against 33 transactions worth $1,951 million in the same period last year

The top deal of the month was the DST Global Solutions Ltd-led $210 million investment in Flipkart Pvt. Ltd. Photo: Pradeep Gaur/MintPremium
The top deal of the month was the DST Global Solutions Ltd-led $210 million investment in Flipkart Pvt. Ltd. Photo: Pradeep Gaur/Mint

New Delhi: Private equity investment activity in India remained muted in May with 43 deals worth $904 million in total, registering a decline of over 53% over the corresponding period last year.

“PE has been a bit subdued but we expect significant uptick in that area also," Grant Thornton India LLP partner Harish H.V. said.

According to assurance, tax and advisory firm Grant Thornton’s latest deal tracker, PE investments in May stood at $904 million from 43 deals, while in the same period last year, there were 33 transactions worth $1,951 million.

The top deal of the month was the DST Global Solutions Ltd-led $210 million investment in Flipkart Pvt. Ltd. The investment takes Flipkart’s total funds raised to $780 million since its inception.

Meanwhile, PE deal investments have shown a steady growth in terms of volume with 228 deals in the first five months of this year, compared to 172 deals in the January-May period last year.

However the value is yet to match up to levels shown in previous years. Information technology (IT) and IT-enabled services (ITeS) outshone the other sectors with the e-commerce sphere doing well both in terms of strategic and financial investments.

“IT and ITeS continue to dominate volumes and will do so whilst values will be driven by core sectors of the economy," Harish added.

Other major private equity deals of the month include Warburg Pincus LLC’s 25% stake acquisition in Laurus Labs Pvt. Ltd for $150 million, followed by home-grown e-commerce giant Snapdeal.com which raised $100 million in a new round of funding from Temasek Holdings Pte Ltd, BlackRock Inc., Myriad Asset Management Ltd, Premji Invest and Tybourne Capital Management (HK) Ltd.

International Finance Corp., the private sector lending arm of the World Bank, picking up around 8% stake in Religare Enterprises Ltd for $68 million was the other major PE deal during May.

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Published: 16 Jun 2014, 08:34 PM IST
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