On a year-to-date (YTD) basis, PE investment values grew by 56% despite a 2% marginal fall in deal volumes.
Driven by the corporate tax cut, the month of October recorded a 25% year-on-year (yoy) rise in private equity (PE) deal values at $3.727 billion led by a billion-dollar deal and six high-value investments of $100 million or over. At the same time, PE volumes also recorded a 22% increase.
“Driven by ADIA, PSP Investments and NIIF’s $1.1-billion investment in GVK Group, the infrastructure sector dominated the PE investment values, capturing 29% of the PE deal values for the month. This deal also displays the increasing interest from sovereign wealth funds in the Indian infra space and the readiness to write big cheques,” the report said.
The start-up sector continued to drive the PE deal volumes with a 71% share, dominated by investments in retail platforms. This was followed by fintech and healthtech companies gaining investors’ attention, it said.
On a year-to-date (YTD) basis, PE investment values grew by 56% despite a 2% marginal fall in deal volumes. “This demonstrated increased average deal size and resulted in the highest YTD values recorded, showing the appetite among PE players to invest in India,” the report said.
Pankaj Chopda, director, Grant Thornton India, said debt-heavy and capital-starved sectors such as energy and natural resources, infrastructure management, and banking and financial services will be the major seekers for PE/VC investments.