PE, VC investments in India up 51% in February, but exits too soar 3 times

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New Delhi | Published: March 12, 2019 4:34:40 AM

Private equity and venture capital (PE/VC) investments rose 51% in February to $2.6 billion compared to the corresponding period last year, on the back of increasing number of large deals, says an EY report.

equity, private equity, venture capital, indiaSoftBank and Carlyle’s 5-million investment in Delhivery was not only the largest deal in Februar

Private equity and venture capital (PE/VC) investments rose 51% in February to $2.6 billion compared to the corresponding period last year, on the back of increasing number of large deals, says an EY report.
February reported nine large deals, aggregating $1.8 billion, compared to four large deals adding up to $655 million in the same month last year, the report stated. January, on the other hand, recorded four large deals worth $1 billion.

SoftBank and Carlyle’s $415-million investment in Delhivery was not only the largest deal in February, but also the largest-ever PE/VC pact in the logistics sector, the report pointed out.
“From the type of investment point of view, growth investments in February, at $1.2 billion, were 27% higher compared to the same period last year. Private investment in public equity (PIPE) deals recorded a rebound in February, emerging from a four-year low of $2.8 million recorded in January.

“At $431 million, PIPE investments in February were highest in the past eight months,” the report stated.

February also recorded two buyouts worth $262 million, compared to four, worth $273 million, in the same month last year.

Start-up investments in February stood at $156 million from 32 deals — 52% lower compared to $325 million recorded from 31 deals in the corresponding period last year.

Exits in February, at $472 million, were almost three times the value recorded in the same month last year. This was on the back of a rebound in open market exits in the wake of subsiding volatility in the stock markets, the report said.

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“There were four open market exits in February worth $351 million — more than three times the value recorded in February 2018, and highest in the past six months. There was one PE-backed IPO in February that saw Goldman Sachs and Kuwait Investment Authority-backed Chalet Hotels Limited get listed on the bourses. The largest exit in February saw Bain Capital and GIC sell 5% stake in Genpact for $324 million,” it said.

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