PE investments down 54% to $324 mn in Feb: report

Private equity investments in Indian companies declined 54% to $324 million in February, over the same month a year-ago.

"The second month of 2011 saw $324 million of private equity investments in Indian companies, 54% down from the investments of $699 million for the same month last year," according to a report by financial consultant Four-S Services.

Besides, the total number of deals announced in February 2011 was lower than that in the year-ago period.

In February this year, 22 PE deals were announced, against 23 deals in the same month last year.

The year 2011 has so far witnessed investments worth $755 million, compared to $1.15 billion for the same period (January-February) last year.

In terms of investments, banking, financial services, insurance and real estate sector attracted maximum inflows, during the month.

The biggest deal of the month was Ratnakar Bank, which raised $158 million equity fund from the country's largest mortgage lender HDFC Ltd and a consortium of private equity investors, including Beacon India Private Equity Fund and Faering Capital, among others.

This was followed by a $44 million investment by Red Fort Capital in Ansal Properties' joint-venture to build a residential project.

In terms of sectors, banking, financial services, insurance sector topped the chart accounting for 50% of investments with a deal value of $162 million.

Real estate occupied the second slot with $44.1 million (14%) worth investments in a single deal. Besides, infrastructure and food were other sectors accounting for 8% of investments each.