Private equity investments jump 48% in value to $1.22 bn in July
NEW DELHI: Private equity investments in India jumped 48 per cent in value terms to $1.22 billion in July over the same month last year, mainly driven by big ticket transactions, says a report.
According to assurance, tax and advisory firm Grant Thornton India, there were 59 PE transactions worth $1.22 billion in July this year, while in the corresponding month last year there were 88 such deals worth $826 million.
In July, PE investment values witnessed a strong increase on account of five big-ticket investments, valued at over $100 million – together contributing to over 67 per cent of the total PE investment values – as compared to only one such deal in May 2016.
The January-july period saw 472 PE deals worth $8.81 billion, registering a 30 per cent rise over the comparable period last year.
“July witnessed around 60 transactions valued at $1.2 billion, which was almost 50 per cent more in value than the same month last year. The sector focus this month for PE seems to be the BFSI sector with manufacturing and pharma rallying closely behind,” Grant Thornton India LLP Partner Prashant Mehra said. The month of July was dominated by investments in start- ups which contributed to 49 per cent of total investment volumes. On the other hand, banking sector dominated the PE investment values contributing to 46 per cent of investment values followed by pharma.
“The sector flavour for this year has been around the core sectors and we will perhaps continue to see this trend as positive macro-economic factors boost these sectors the most. Also, from an exit through IPO perspective, the probability for success is more in core sectors than others,” Mehra said.
Going ahead, the PE deals outlook looks bullish.
“The remaining five months of 2017 will continue to see reasonable growth in PE, but the key growth will perhaps be from PE deals which are looked as an alternate means of financing Domestic M&A,” Mehra said. NEW DELHI: Mutual funds managers pumped more than Rs 40,000 (rpt) 40,000 crore in the stock markets during Apriljuly of the current fiscal due to strong participation from retail investors.
In comparison, foreign portfolio investors (FPIS) bought equities worth Rs 21,000 crore during the period under review.
“We have been witnessing a shift in investment towards equity class as investment avenues like real estate and gold are not doing well,” Vidya Bala, head mutual fund research at Fundsindia.com said.
Besides, domestic fund inflows have been looking at the long-term story. Also, they are buoyed by continued strong inflows from retail investors, she added.
“The rally in stock markets was the primary reasons for the robust inflows in equities,” Bajaj Capital CEO Rahul Parikh said.
Besides, successful implementation of GST with no major business disruptions being reported, drove fund managers into equities, he added.
Mutual fund managers invested a net sum of Rs 41,508 (rpt) 41,508 crore in April-july period of the current financial year, as per data released by the Securities and Exchange Board of India (Sebi).
Month-wise, fund managers invested a net sum of Rs 11,244 crore in stock markets in April, Rs 9,358 crore in May, Rs 9,106 crore in June and Rs 11,800 crore in July.
The inflow is in line with BSE'S benchmark Sensex rising around 10 per cent during the first four months of the current financial year.
At present, the mutual fund industry is managing an asset base of about Rs 20 lakh crore mark.
Going ahead, fund houses are upbeat over the industry's performance for the entire current fiscal, while expecting investment from new investors to fuel growth of the sector.
A mutual fund pools in assets of its investors and invests the money on their behalf. It provides diverse investment instruments like stocks and bonds without requiring investors to make separate purchases and trades.
All the mutual funds are registered with SEBI. They function within the provisions of strict regulation created to protect the interests of the investor.