PE deals worth $5.85 bn sealed during Jan-May: Thornton

Private equity deals witnessed significant uptrend in May with transactions worth USD 1.24 billion, taking the tally for the first five months this year to USD 5.85 billion, says a Grant Thornton report.

According to the assurance, tax and advisory firm, there were 68 PE transactions worth USD 1,249 million, up 48 per cent over same month last year when deals worth USD 846 million were announced.

"PE activity continues to show encouraging trends, perhaps because of optimism and the fact that overall macro level indicators look positive," Grant Thornton India LLP Partner Prashant Mehra said.

The deal value for the month was largely driven by big ticket deals -- as four large deals were announced during the month each valued at over USD 100 million.

Mehra further said the increasing PE momentum, should get a lift with the government's key reforms being implemented, which in turn is likely to further boost overall deal activity in the coming months.

Meanwhile, in the first five months of this year, PE deals amounted to USD 5.85 billion, registering an increase of 66 per cent year-on-year with large investments in sectors like IT & ITES, BFS, pharma, real estate and manufacturing.

Sector-wise, with more than 50 per cent of total volume, IT & ITES continued to be the preferred sector for PE-deals, while banking and financial services and pharma sectors also witnessed big ticket deals worth over USD 100 million, the report said.

Apax Partners' acquisition of 20.37 per cent stake in Shriram City Union Finance for USD 371 million from TPG Capital was termed as the deal of the month by the report.

Other major transactions include, Capital International's 11 per cent stake acquisition in Mankind Pharma for USD 206 million, followed by IFC, GIC, SIDBI's investment in Bandhan Financial Services for USD 165 million.