New Delhi: Private equity investments witnessed a declining trend both in value and volume terms in November, with 39 deals worth around $500 million, says a report.
According to the report released by Grant Thornton, PE deal tally from January to November was 717 and totalled $17.8 billion in valuation.
The deal volume saw a four per cent increase over the same period a year ago, while the deal size of investments declined by nine per cent, as big ticket investments remained cautious.
In November, there was only one big-ticket investment worth over $100 million. The month also recorded the lowest PE volume in last 4.6 years and the lowest in last 28 months in terms of value, the report said.
India Resurgence Fund, promoted by Piramal Enterprises Ltd and Bain Capital Credit, invested $156 million in Chennai-based Archean Group’s marine chemicals business – the biggest deal of the month.
Some other key deals announced in November are: Shunwei Capital’s investment of $50 million in startup Fashnear Technologies, and TPG Growth’s $42 million investment in non-banking finance company Ess Kay Fincorp Ltd, among others.
Sectorally, startup, banking and financial services, IT and ITES and e-commerce led the PE activity by capturing 90 per cent of the total deal size in November, the report said.
“PE/VCs reported deals aggregating to $0.5 billion in November as compared to $2.4 billion in November 2017. Barring the $1.8 billion PE investment in Axis bank in November 2017, November this year witnessed a 25 per cent decline in deal values and 39 per cent decline in deal volumes,” Grant Thornton India LLP director, Pankaj Chopda, said.
The decline in the deal volumes can be attributed to longer deal completion cycles and cautious approach following the upcoming national elections and also global uncertainties, added Chopda.