PE investments in India dip 46 per cent in 2016's first half

Private equity investments in India, excluding the real estate sector, added up to $5.8 billion in the first six months (H1) of the calendar year 2016, nearly 46 per cent less than $10.6 billion recorded during the same period last year, an online research platform said on Monday.

"On the quarter basis, deal value is down 62 per cent from $6.1 billion to $ 2.2 billion between April-June quarter of the last year and the same quarter in 2016; the lowest investment received in the second quarter since 2013," the online financial research platform VCCEdge said in its Deal Report H1 CY 2016.

Deal volume was recorded at 643 deals, down 13 per cent compared to 737 deals in the corresponding period last year.

Private equity exits down to a five-year low on a sequential basis. Private equity investors unlocked $1.4 billion worth of investments across 97 exits in H1, a statement said.

Venture and late stage capital also declined significantly, down 64 per cent and 55 per cent in the first six months of 2016 as compared to same period last year.

According to report, angel and seed investments grew 16 percent to 368 deals in H1 CY16 from 317 deals a year ago, while deal value slipped 25 per cent to $100 million from $134 million, reflecting a drop in average ticket-size.

The report said the first-half of 2016 saw 479 M&A (Merger & Acquisition) deals worth $14.5 billion being struck. Compared to same period last year, deal value is up 76 per cent while deal volume remains unchanged.

Domestic M&A deals saw an uptick in deal value and volume, growing 86 per cent and 10 per cent, respectively, the report said.

--IANS

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