India Inc clocks PE deals worth $494 mn in April

The month of April saw private equity deals worth $493.94 million being announced taking the total number of such deal value during the first four months of this year to $1.31 billion.

The total number of private equity deals announced during the month of April 2009 stood at $493.94 million through 15 deals, global consultancy firm Grant Thornton said adding that the total number of PE deals during the first four months of this year stood at 56 deals with an announced value of $1.31 billion.

"On the private equity front, we are finally seeing some increase in the deal values compared to the first three months of the year, where deal values are close to half a billion dollars," Grant Thornton Partner, transaction support services C G Srividya said.

However, the PE deal value so far this year represents a significant decline of over 72 per cent from its year ago period. In the first four months of 2008, India Inc had announced private equity deals worth $4.68 billion through 149 deals.

The total number of private equity deals announced during the calendar year 2008 stood at 312 with a total announced value of $10.59 billion.

On a month-on-month basis the deal value is slowly narrowing the gap. "The total number of private equity deals announced during the month of April 2009 stands at 15 deals with an announced value of $493.94 million as against 32 deals amounting to $562.85 million in the month of April 2008," Grant Thornton said.

Some of the major private equity deals include Bennett Coleman and Co's $44.44 million investment in Videocon Industries, and Navis Investment Partners' $30 million infusion in Edutech India.

As per market experts the negative trend in the equity market had a negative impact on the private equity scenario. The Bombay Stock Exchange benchmark index Sensex has fallen 52.4 per cent in 2008, its worst year ever, ending a five-year bull run that saw the market rise six-fold.

However, after the decisive win by the ruling government in the general election, the stock market witnessed an upsurge and is on a revival mode. Accordingly, experts believe this rebound in the capital market is likely to drive the private equity scene as well.