PE players invest $1.5 bn in first three months of 2011

India saw private equity investments worth $1.5 billion (over Rs 6,630 crore) in the first three months of 2011, with majority of deals happening in the infrastructure space, says Ernst & Young.

However, the deal value in the 2011 first quarter is much less than $2.2 billion during the same period last year.

"During the quarter-ended March 2011, the investment activity witnessed 96 deals totalling to $1.5 billion," global consultancy E&Y said.

The higher deal value in the 2010 first quarter was mainly on account of a "few large sized deals" during that period.

"Although compared to the corresponding quarter in 2010, the aggregate deal value was lower in Q1, 2011, the number of deals were 50% higher indicating continued deal momentum that built up in 2010," it said.

Infrastructure sector attracted the highest amount of investment, accounting for around 40% of the total deal value, E&Y noted.
    
In terms of deal numbers in first three months of 2011, retail and consumer products sector saw the highest count of 17 transactions, followed by infrastructure (15) and technology (12).
    
Private equity deals worth about $750 million were recorded in March, an increase of "nearly 120% from February 2011". Infrastructure sector accounted for the highest share of 56% in terms of total deal value last month.
    
Infrastructure segment witnessed two major transactions -- Macquarie SBI Infrastructure Fund's $200 million investment in GMR Airports Holdings and 3i India Infrastructure Fund's $112 million investment in KMC Infratech.
    
"The GMR Airports-Macquarie SBI Infrastructure Fund deal was the largest deal of the month (March)," E&Y said.