New Delhi: Private equity deals worth USD 1.17 billion were sealed in the very first month of this year, registering a jump of 74 percent over last year, says a Grant Thornton report.
According to the assurance, tax and advisory firm, the upward trend in PE investment activity continued in January with 74 percent higher deal values compared to the same month last year.
In January 2014 there were 54 private equity deals worth USD 675 million.
Private equity investments witnessed heightened interest in IT & ITeS, particularly in the e-commerce space, which drove both values and volumes.
In one such investments, online marketplace ShopClues raised over USD 100 million from a group of investors led by Tiger Global.
The month also saw big ticket investments from global PE players into the Indian hospital sector, led by Manipal Health Enterprises' proposed sale of its 24.75 percent stake to global private investment firm TPG.
BFS also witnessed renewed interest, with Ujjivan Financial receiving close to USD 100 million of funding, making it the single largest investment into a microfinance lender in India.
Other top PE deals of the month include, IDFC -India Infrastructure Fund's USD 81 million investment in DB Power Limited for a 15 percent stake in the company and SAIF partners' USD 60 million investment in One97 Communications, the Grant Thornton report said.
Sector-wise, IT & ITeS attracted 37 transactions worth USD 411 million, followed by pharma and healthcare (5 deals, USD 303 million) and media and entertainment (5, USD 39 million) respectively.
"IT & ITeS continue to lead both M&A and PE activity in India with M&A majorly driven by consolidation trends within the sector and PE still maintaining the sector as flavour of the month," Grant Thornton India LLP Partner Prashant Mehra said.
