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PE deals worth $5.85 bn sealed during Jan-May: Thornton

Private equity deals witnessed significant uptrend in May with transactions worth $1.24 billion, taking the tally for the first five months this year to $5.85 billion, says a Grant Thornton report. According to the assurance, tax and advisory firm, there were 68 PE transactions worth $1,249 million, up 48 per cent over <g data-gr-id="22">same</g> month last year when deals worth $846 million were announced.

“PE activity continues to show encouraging trends, perhaps because of optimism and the fact that overall macro level indicators look positive,” Grant Thornton India LLP Partner Prashant Mehra said. The deal value for the month was largely driven by <g data-gr-id="20">big ticket</g> deals -- as four large deals were announced during the month each valued at over $100 million.

Mehra further said the increasing PE momentum, should get a lift with the government’s key reforms being implemented, which in turn is likely to further boost overall deal activity in the coming months. Meanwhile, in the first five months of this year, PE deals amounted to $5.85 billion, registering an increase of 66 per cent year-on-year with large investments in sectors like IT & ITES, BFS, pharma, real estate and manufacturing. Sector-wise, with more than 50 <g data-gr-id="30">per cent</g> of total volume, IT & ITES continued to be the preferred sector for PE-deals, while banking and financial services and pharma sectors also witnessed big ticket deals worth over $100 million, the report said. Apax Partners’ acquisition of 20.37 per cent stake in Shriram City Union Finance for $371 million from TPG Capital was termed as the deal of the month by the report.

Other major transactions <g data-gr-id="16">include,</g> Capital International’s 11% stake acquisition in Mankind Pharma for $206 million, followed by IFC, GIC, SIDBI’s investment in Bandhan Financial Services for $165 mn. 

FPIs outflow touches Rs 4,700-cr in June
 Foreign investors have pulled out over Rs 4,700 crore from the Indian capital markets in first two weeks of the month, primarily on account of attractiveness of its Asian peers, worries over a slow revival in corporate earnings and continued worries over taxation issues.
The debt market has seen steeper outflows than equities. The net outflow by Foreign Portfolio Investors (FPIs) from equities stood at Rs 1,310 crore during June 1-12, while the same for the debt markets was at Rs 3,431 crore taking the total to Rs 4,741 crore, shows latest data from depositories. 
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