Private equity deals worth nearly USD 2 billion were sealed in April this year, registering a jump of nearly three-fold over the same month last year, largely driven by transactions in e-commerce space, says a Grant Thornton report.
According to the assurance, tax and advisory firm, PE investment activity during April witnessed 71 percent increase in terms of number of transactions and 194 percent rise in value terms as compared to the previous period.
“PE deal value stood at around USD 2 billion across 90 deals, which is a significant surge from April 2014, with a value growth of almost three times and volume growth of over 70 percent,” Grant Thornton India Partner Prashant Mehra said.
Going ahead, the coming months are expected to be “exciting”.
According to Mehra, though there is a need to push things on the ground overall as the macro level indicators look positive. “The few months will hopefully be exciting for M&A and PE deals,” he added.
Between January-April period, PE investments witnessed a quantum leap both in terms of volume and value at USD 4.6 billion through 308 deals, against USD 2.6 billion (by way of 183 deals) during January-April 2014.
E-commerce deals were the flavour of the month as this sector contributed more than half of total PE deal values and volumes during April.
In one such investment, app-based taxi aggregator Ola raised USD 400 million from a group of investors, led by DST Global.
The month also saw big ticket investments from global PE players into consumer goods sector, led by private equity investors Advent International and Temasek, who bought 34 percent stake in the demerged consumer products business of Crompton Greaves for USD 316 million.
Other top PE deals of the month include JP Morgan Asset Management’s acquisition of Canaan Partners-portfolio in India for USD 200 million, Temasek’s 4 percent stake buy in Glenmark Pharma for USD 151 million.
A sector-wise analysis shows that the IT-ITeS space attracted 53 transactions worth USD 1,034 million, followed by the pharma sector (7 deals worth USD 177 million), education (6 deals worth USD 21 million), banking & financial Services (4 deals worth USD 225 million) and real estate (3 deals worth USD 116 million), the report added.