Private equity investments in Q2 up despite sluggish deal sentiments

NEW DELHI: Notwithstanding global and domestic economic uncertainties, private equity funds recorded an all time-high investment of $9.4 billion in the third quarter this year, driven by big-ticket transactions, a report said on Thursday. According to Grant Thornton's quarterly PE Dealtracker, the July-september quarter saw 211 PE deals worth $9,613 million, while in the corresponding period last year there were 216 such transactions worth $5,202 million.

"It is interesting to note that amid uncertainties, PE investments recorded all time high investment value of $9.4 billion in the third quarter surpassing the previous record of $7.9 billion in Q1 2019," said Pankaj Chopda, Director, Grant Thornton India LLP.

Chopda further noted that "large investments added real momentum to the Indian private equity investment activity with 21 high-value investments of $100 million and above each, contributing to 79 per cent of the total PE investment values".

As per the report, for January-september period, PE investment values soared 1.6 times despite a 4 per cent fall in deal volumes.

For the first nine months of this year, there were 595 PE deals worth $24,302 million, while the same period last year witnessed 622 such transactions worth $14,961 million. "With the increasing confidence amongst investors, the reduction in corporate tax rate is also expected to give a boost to companies in India and those that want to invest in India making it more attractive for both overseas and domestic investors," Chopda said. PE deal volumes across startup, e-commerce, IT & ITES, BSFI and pharma sectors represented 86 per cent of the deals by volume, the report said.