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PE, VC investments rise to US$ 7.9 billion in March quarter

Livemint:  May 04, 2018

Mumbai: Private equity and venture capital firms in India invested $7.9 billion across 180 deals in the quarter ended 31 March, led by large transactions in the infrastructure and real estate sectors, according to EY’s private equity monthly deal tracker.

This is the second highest quarterly investment since the third quarter of 2017, when private equity and venture capital companies invested a record $8.7 billion, EY said.

The rise in investments in the first quarter of 2018 was led by $3.1 billion pumped into infrastructure and real estate projects. That compares with the $305 million invested in the year earlier period.

Financial services continued to be one of the top sectors, receiving $2.9 billion in investments across 31 deals, the report said.

The first quarter witnessed 13 deals of value greater than $100 million, aggregating to $5.7 billion and accounting for 72% of total investments made in Q1 2018.

Six of these were into infrastructure and real estate, worth $2.7 billion.

The largest deal in Q1 was a $1.7 billion investment into Housing Development and Finance Corp. Ltd (HDFC) by a group of institutional investors including PE firm KKR & Co., Singapore sovereign wealth fund GIC and others, making it the largest private investment in public equity since Temasek invested $2 billion in Bharti Airtel Ltd in 2007.

The quarter also saw the first ever investment by National Investment and Infrastructure Fund (NIIF), India’s sovereign wealth fund wherein Hindustan Infralog Pvt Ltd, a JV between NIIF and DP World, bought 90% in Continental Warehousing Corporation (Nhava Sheva) Ltd for $400 million.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.