Private Equity Investment In India Rises 59% In August, Grant Thornton Report Shows
Private equity investments in India stood at $2.11 billion, about Rs 14,700 crore, in August, an increase of 59 percent from the year-ago period, primarily due to large-ticket deals.
PE investment in India stood at $1.33 billion (about Rs 9,300 crore) in August 2018, Grant Thornton’s monthly PE Dealtracker for August 2019 report showed.
"The regulatory and policy framework in India continues to be favourable for heightened PE deal activity with values recorded at $2.1 billion, 1.6 times the August 2018 deal values, driven by eight high-value investments of and above $100 million each. This displays a strong desire among PE players to invest in India," Pankaj Chopda, director of Grant Thornton India LLP, said in the report.
"While policy actions and missteps have played an important role in shaping the global economic events and their impact on market sentiment, active policy stimulus will be the need of the hour to support deal activity in the face of adverse macro-economic indicators," he added.
In volume terms, PE deals stood at 69 in August this year against 67 in the year-ago month, a decline of 3 percent, the report said. However, compared to July 2019, August witnessed a "significant downtrend in deal activity with 2.6 times fall in the investment values with a marginal 3 percent fall in the volumes."
Infrastructure sector dominated the PE investment chart in August this year with the Government of Singapore Investment Corp’s $622 million investment in IRB Infrastructure's build–operate–transfer assets, the report said. This deal also marked the biggest infrastructure investment till date by a single sovereign wealth fund.
The startup sector continued to occupy the larger share of volumes with 68 percent, dominated by investments in fintech companies, followed by data analytics and artificial intelligence, retail and discovery platforms. This shows a continued uptrend amid the prevailing economic and political crisis, the report said.
Infrastructure, startups, e-commerce, information technology, manufacturing and real estate sectors were impressive, garnering big ticket investments of over $100 million each, it added.