‘Pri­vate equity in­vest­ment hits record $19.5b in 2015’

The Pak Banker - - 6BUSINESS -

NEW DELHI: Pri­vate equity in­vest­ments dur­ing the Oc­to­ber-De­cem­ber pe­riod to­talled $ 3.9 bil­lion, tak­ing the deal value for the year 2015 to $19.5 bil­lion - the "best ever" for In­dia, says a re­port.

Ac­cord­ing to the PwC MoneyTree In­dia re­port, a quar­terly study of PE in­vest­ment ac­tiv­ity based on data pro­vided by Ven­ture In­tel­li­gence, the fourth quar­ter of 2015 saw in­vest­ments worth $3.9 bil­lion, a 12% drop as com­pared to the same pe­riod of 2014. How­ever, de­spite the drop, the stel­lar per­for­mance through­out the year helped 2015 be­come the best year ever, with a to­tal of $19.5 bil­lion worth of PE in­flows across 159 deals.

"In­dia's macros are look­ing good, with the cur­rent ac­count and fis­cal deficit at ac­cept­able lev­els, a rel­a­tively sta­ble ru­pee, in­fla­tion at below 5% and, most im­por­tantly, a de­clin­ing in­ter­est rate regime. This should en­cour­age pri­vate in­vest­ment as de­mand picks up," PwC In­dia leader, Pri­vate Equity San­jeev Krishan said. Sec­tor­wise, the in­for­ma­tion tech­nol­ogy and ITen­abled ser­vices (IT & ITeS) con­tin­ued to be the big­gest sec­tor, as this space at­tracted $1.3 bil­lion in 93 deals, fol­lowed by the bank­ing, fi­nan­cial ser­vices and in­sur­ance (BFSI) sec­tor that at­tracted $910 mil­lion in 10 deals.

"In 2015, sec­tors such as bank­ing, in­sur­ance and tele­com saw the sta­bil­i­sa­tion of their busi­ness and opened up their tech­nol­ogy spend over the year, thereby driv­ing the growth of the In­dian IT & ITeS in­dus­try," PwC In­dia leader - Tech­nol­ogy, San­deep Ladda said. "Me­dia & en­ter­tain­ment sec­tor was a sur­prise, at­tract­ing in­vest­ments worth $414 mil­lion," the re­port said.

Re­gion­ally, Mum­bai at­tracted $ 1.9 bil­lion, while Ben­galuru was a dis­tant se­cond with in­vest­ments worth USD 733 mil­lion. Go­ing for­ward, Krishan said, "fi­nan­cial ser­vices, tech­nol­ogy and health­care con­tinue to see sus­tained ac­tiv­ity in 2016, while e-com­merce fund rais­ing may get chal­leng­ing this year at least in the near term". He added that the In­dian Govern­ment's fo­cus on mak­ing it eas­ier for for­eign in­vestors to do busi­ness in In­dia will help from a per­cep­tion stand­point and needs to be backed by real re­form.

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