PE activity remains upbeat in quarter ended September: Grant Thornton

By: |
Published: October 25, 2019 2:41 AM

On a YTD basis, PE investment values soared 1.6x times despite a 4% fall in deal volumes, demonstrating increased average deal size and appetite of PE/VC investors to write big cheques, the report said.

The telecom, energy, infra, banking, IT, e-commerce and real estate sectors led the PE deal values in year-to-date (YTD) 2019, capturing 75% of the total deal values.

Private equity (PE) investment values almost doubled with a marginal fall in the volumes in the quarter ended September (Q3 2019) compared to the same period last year (Q3 2018), driven by 21 high-value investments, said Grant Thornton’s PE Dealtracker report. PE deal values stood at $9.6 billion in Q3 2019, up 85% compared to the same period last year.

This is contrary to the M&A deal activity in Q3 2019, which witnessed a downtrend, with total values falling by more than half as compared to Q32018. The quarter ended September witnessed the single-biggest private equity deal ever in India, with Brookfield’s $3.7-billion investment in Reliance Industries’ telecom tower assets, the report said. This deal accounted for 38% of total PE deal values for the quarter.

The telecom, energy, infra, banking, IT, e-commerce and real estate sectors led the PE deal values in year-to-date (YTD) 2019, capturing 75% of the total deal values. The start-up sector, on the other hand, still continues to drive deal volumes, capturing 60% of the total deal volumes and garnering $3.4 billion through 355 deals.

On a YTD basis, PE investment values soared 1.6x times despite a 4% fall in deal volumes, demonstrating increased average deal size and appetite of PE/VC investors to write big cheques, the report said.

Grant Thornton India director Pankaj Chopda said with the increasing confidence amongst investors, the reduction in corporate tax rate is expected to give a boost to companies in India and those that want to invest in India, making it more attractive for both overseas and domestic investors. “Rising investment in technology and infrastructure will realise efficiency gains. Additionally, adoption of technology and continuous innovations across sectors is likely to boost deal activity,” he said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Cyber threats: Reactive approach won’t be enough to protect businesses in 2020 and beyond
2Amazon gets Indian patent for auto authentication of mobile transactions
3Work-from-home solutions: How Accops delivering business continuity amid Covid