PE firms strike deals worth Rs 4,500 cr in Jan

At least 38 private equity deals worth nearly Rs 4,500 crore ($890 million) were sealed in January, according to Research firm Four-S Services.

PE/ VC investments in India
	Jan ’12	Jan ’11	% Chg YoY	Dec ’11	% Chg MoM	2011	2010	% Chg YoY
Investment ($mn)	890.5	942	-5%	580.2	53%	11,160	7,958	40%
No. of deals	38	27	41%	33	15%	422	328	29%
Average deal size* ($mn)	33	42.8	-23%	24.2	36%	33.3	28.5	17%
* calculated over disclosed transactions
Source: Four-S Services

In the largest deal of the month, online retailer Flipkart raised Rs 750 crore ($150m) from existing investors Accel Partners and Tiger Global Management. This is so far the largest deal in the online retail space in India.

This was followed by Temasek’s investment of around Rs 670 crore ($ 135 million) to buy 4.9% stake in consumer products firm Godrej Consumer Products, in the single largest alternative investment deal in the Indian FMCG industry. Logix Group sold four office buildings in Noida to IL&FS Investment Managers for little less than Rs 600 crore.

Infrastructure topped the investment chart accounting for 21.7% of investments with a deal value of Rs 950 crore. Real Estate occupied the second slot with 19.6% worth of investments across 3 deals. Healthcare (18.3% share), retail (17.4%) and manufacturing ( 16%) were other major sectors.

On a month over month basis, the investment was up 53% from $580 million of investments across 33 deals in the month of December 2011. On year on year basis, the investments are 5% down from the investments of $942 million across 27 deals for the same month last year.

Last year aggregated $11.16bn of investments across 422, registering 40% year on year growth compared to investments worth $7.96 billion across 328 deals in 2010.

Top 5 PE deals in January 2012
Investors	Target	Stake (%)	Amount ($Mn)	Sector-Industry
Accel Partners and Tiger Global Mgmt	Flipkart	NA	150	Services – Retail
Temasek Holdings	Godrej Consumer Products	4.9	135	Manufacturing – FMCG
IL&FS Investment Managers	Logix Group	NA	117.6	Real Estate
General Atlantic	Fourcee Infrastructure	NA	104	Infrastructure – Logistics
Olympus Capital	DM Healthcare	NA	100	Services - Healthcare
Source: Four-S Services