PE investments in India at $630 mn in May

Private equity investments in the country zoomed to $630 million in May, nearly three times compared to the year-ago period, as investors preferred financial services and healthcare companies.

"Private equity investments in India in May 2010 grew by nearly 200 per cent as compared to the same period last year. Deal value was $630 million in May this year against $211 million in May last year," deal tracking research firm VCCEdge said in its report.

The total deal count also increased by 42 per cent to 28 deals from 19 recorded in May last year.

However, on a month-on-month basis, PE deal valuation declined by 25 per cent from USD 840 million in April.

The month of March has been the best in terms of PE investments so far in 2010, with the deal value at its highest at $973 million.

During the month of May, financial services, materials and healthcare segment were the most valued sectors for PE funding. "Together, they accounted for more than 80 per cent of total PE deals during the month," VCCEdge said.

In May, financial sector saw an investment of $212 million, followed by materials ($166 million) and Healthcare ($131 million).

Together, the three sectors account for 80 per cent of the total PE deal value during the month, VCC Edge said.

The most valued sector in terms of deal volume was the financial sector with nine deals during the month, followed by consumer discretionary with five deals. Other sectors which saw major deals happening, include IT and industrial accounting (4 deals each).

Major PE investments during the month were in companies like Avinja Properties, National Stock Exchange, Fortis Healthcare and Pegasus Assets Reconstruction.

Kohlberg Kravis Roberts & Co(KKR)'s $165 million investment in Chennai-based Avnija Properties, followed by Temasek Holdings' funding in National Stock Exchange ($150 million).

Also GIC Special Investments' $84 million investment in Fortis Healthcare and DE Shaw's $26 million funding in Pegasus.