Private equity inflows drop 51% to $2.4 billion in January-March: Report

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New Delhi | Published: May 5, 2016 6:10:10 PM

The top PE deals in the quarter included Naspers infusing a further $250 million in ibibo Group and Snapdeal raising $200 million from Canada's Ontario Teachers' Pension Plan.

RupeeThis was 47% lower than inflows of .5 billion in January-March 2015 quarter, the report by investment banking firm Merisis Advisors said. (PTI Photo)

Private equity inflows into the country dipped 51 per cent to $2.4 billion in January-March 2016 in 301 deals compared to the preceding quarter, indicating a lean period in deal activity, says a report.

This was 47 per cent lower than inflows of $4.5 billion in January-March 2015 quarter, the report by investment banking firm Merisis Advisors said.

The top PE deals in the quarter included Naspers infusing a further $250 million in ibibo Group and Snapdeal raising $200 million from Canada’s Ontario Teachers’ Pension Plan and others among others.

Besides, angel and seed investments grew in volume but slowed down in value terms.

“Deal volume for angel/seed investments was up 37 per cent to 189 deals in the said quarter from 138 deals a year ago. Deal value however slipped 32 per cent to $58 million during the same period,” it said.

Also, exits saw a lackluster performance dipping to a 15-quarter low in value terms. Deal value slipped by 70 per cent from $1.7 billion in the fourth quarter FY2014-15 to $508 million in January-March FY16.

Deal volume trimmed by more than half from 89 deals to 39 deals during the same period, it said.

M&A deals spiked in value, majorly due to the top 3 strategic acquisitions which contributed to more than 55 per cent of the total M&A deal value, the report said.

These include Quikr’s acquisition of CommonFloor.com for $200 million and Kedaara Capital and Partners Group purchasing mortgage arm of Jaipur-based lender Au Financiers for Rs 950 crore ($140 million) among others.

“Due to this M&A’s in India showed a rise of 88 per cent to $8.9 billion in Q4 FY16, as compared to a year ago. Deal volume slipped to 230 in Q4 FY16, as compared to 248 a year ago,” the report said.

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