Private equity transactions in India fell by a significant 68 per cent in 2009 as investors resorted to a wait and watch approach amid the slowdown.

According to a report by global consultancy firm Grant Thornton, there were 206 deals in 2009 with a total announced value of $3.44 billion (Rs 15,953 crore), a fall of 68 per cent from the year ago period (2008) when as many as 312 deals worth $10.59 billion were announced.

Also Read   Related Stories News Now - India-focused M&A deals touch $3 bn this yr - Home grown I-bankers beat global biggies - Indian i-bankers upstage global big boys in volumes - PE, VCs on road to raise $13-15 bn in 2010, say experts - Optimism level among businesses bounce back: Grant Thornton - 'Deal values will rise further'

Also Read   Related Stories News Now - Markets near day lows as Q4 GDP disappoints - Bikram Singh assumes charge as new Army Chief - Kavveri Telecom rallies on hopes of overseas acquisition - Normal life in Assam affected due to bandh - Bandh hits normal life in Odisha More

"In the absence of active private equity participation, several large companies turned to qualified institutional placement (QIPs) to fund their renewed acquisition appetite. QIPs raised a whopping $8.6 billion in 2009 via 54 deals.

Elaborating on the reasons behind dwindling PE investments, the report said the global slowdown, corporate scandals and high valuation expectations by promoter companies were the major dampeners.

The largest PE deal in 2009, was Fire Capital's investment in Fire Arcor Infrastructure for a 75 per cent stake valued at $250 million, followed by 3i's investment in Krishnapatnam Port and Oman Sovereign Fund's investment in Mohtisham Estates, Grant Thornton said.

A sector wise analysis shows that the highest proportion of PE investment was made in sectors such as real estate, infrastructure and power.

The real estate and infrastructure management sector attracted 25 deals amounting to $881.85 million while in the power and energy segment there were 13 deals worth $412.85 million, Grant Thornton added.

Other sectors significantly contributing towards value of PE investment were banking and financial services (11 per cent), logistics (6 per cent) and IT & ITeS (6 per cent), the report added.

Meanwhile, smaller niche sectors such as education, microfinance and media were able to raise small yet meaningful funds from interested VC (venture capital) and PE partners.

The education sector raised close to $100 million across vocational and tutoring institutes and education IT portals, the mainstay of the sector over the past 3-4 years.

Media on the other hand saw a significant traction with 10 deals raising $210 million, the report added.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets near day lows as Q4 GDP disappoints - Bikram Singh assumes charge as new Army Chief - Kavveri Telecom rallies on hopes of overseas acquisition - Normal life in Assam affected due to bandh - Bandh hits normal life in Odisha

Tags : PE deals | Grant Thornton | Private equity | India Inc   Read Business news in  Advertisements -  India's no. 1 Property Site. Click here to know more -  "Discover The Power of One" -  Help a Child Achieve her. Click to know more -  The Best Seller is Also the No. 1 in Mileage. Click here -  Watch The Film Here. Click here to know more.. -  Learn How One City is Running on FOOD SCRAPS. -  1 billion in saving for Unilever without any tangles. -  A Brand New Server at a Price That Fits Your Budget. Click here -  One Partnership Endless Possibilities. Click here to know more -  Helping doctors detect diseases earlier, saving costs & extending lives. -  Which is the best plan for your daughter -  Check out the TRUE COLOURS of your Stocks, Now for FREE! -  One of the leading business schools in the world.Know More -  2 Lac Apartments, 1 Lac House / Plots. Click here