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Indian PE investment deals decrease, value rises 57% in Q1 2012

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In a first ever report called – Moneytree India – released by PricewaterhouseCoopers gives a great overview of private equity investment activity India witnessed based on data provided by Venture Intelligence. The report serves as a good source of information with respect to funding provided by Private Equity and Venture Capital investors.

In first quarter of 2012 Private equity investments in India decreased by 24 percent – From 120 deals in previous quarter to 91 deals – however, in terms of dollar value it witnessed 57 percent rise. While previous quarter registered USD 1.1 billion worth of PE deals, Q1 of 2012 saw it rise to USD 1.8 Billion. This rise in dollar value was primarily due to 5 deals that were struck which valued USD 100 million or more.

Quarterly PE Activity in India

Number of Deals

Although, the amount is higher for first quarter of 2012, if you compare the figures for Q1, 2011 with Q1, 2012, the value has fallen by over 50%.

PE Investments by Industry

The Healthcare sector saw the highest level of PE funding in Q1 ’12. The average deal size for the sector increased to USD 38 million from USS 7 million in the previous quarter and USD 10 million for the same period last year.

The IT & ITeS sector had the largest number of PE deals, with an investment of USD 263 million in 35 deals during Q1 ’12 — a 13% growth in value but a decline of 8% in the number of deals. BFSI sector saw an increase of 84% in terms of value (USD 272 million) and a decline of 27% in the number of deals (11 deals), compared to the previous quarter investment of US$148 million in 15 deals.

PE Investments by stage of development

The late stage companies (30 deals) are the most favored ones by Private equity investors, however early stage companies (29 deals) also quite a bit of interest in this quarter.  However, in dollar terms, growth (USD 501 million ) and late stage companies (USD 699 Million) saw significantly higher investments compared to early stage companies (USD 64 Million).

company stage investment

 

P.E Investments by Region

Mumbai (16 deals worth USD 412 mln) was the most favored city for investments followed by Bangalore (20 deals worth USD 369 mln). Chennai’s investment (8 deals worth USD 131 mln) jumped 407% in Q1 ’12, propelled by two large deals in the BFSI space.

by region

Top PE Investments in Q1 2012

Temasek’s investment in Godrej Consumer products worth USD 137 million was the highest for Q1, 2012 followed by Advent’s acquisition of Care hospital worth USD 110 million. There were 5 deals which were around USD 100 million or more which propelled rise of PE investments in dollar terms as compared to previous quarter.

Check out the entire Moneytree India report released by PWC, which gives much more detailed information on the Private Equity Investments in India.

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