Private equity investments in January-March amounted to USD 3.1 billion through 160 transactions, registering a moderate 2 per cent decline in terms of deal value over last year, says a PwC report.
In comparison with the year-ago period, there was a considerable decline of 24 per cent in terms of deals numbers. January-March 2015 quarter had seen 211 deals worth USD 3.16 billion.
“Indian macros continue to gain health and this is likely to spur M&A and funding activities over the next few months – however we expect this to be sectoral,” PwC India leader Private Equity Sanjeev Krishan said.
A sectoral analysis shows despite a shortfall in big deals in e-commerce, the information technology & IT-enabled services (IT&ITeS) sector continued its dominance with an investment flow totaling USD 1.26 billion in 92 deals.
“The Digital India programme and ongoing efforts on Smart Cities are driving spending on software and IT services,” Sandeep Ladda, leader – Technology, PwC India said adding “the expected growth in the sector will provide more opportunities for investors.”
Banking, financial services and insurance sector (BFSI) came a distant second, attracting USD 430 million. With a single deal, the travel and tourism sector added USD 321 million to its kitty.
“There has been a definite slowdown in the e-commerce/ digital and consumer internet deals and the next few months are likely to see some consolidation in the sector,” Krishan said.
According to PwC MoneyTree India report, a quarterly study of private equity investment activity based on data provided by Venture Intelligence, PE appetite continued to be strong with late-stage investments of USD 1.32 billion invested into mature companies.
Growth-stage investments also played a significant role, attracting USD 918 million in the first quarter of this calender year, the report said.
From a regional standpoint, NCR had an edge over others in January-March with USD 914 million, whereas Bengaluru saw investments of USD 875 million, it said.