PE investments deal tally at USD 17.8 bn in Jan-Nov: Report

Private equity investments witnessed in November a declining trend both in value and volume terms with 39 deals worth around USD 500 million, says a report.

According to the Grant Thornton report, PE deal tally from January to November was 717 totalled USD 17.8 billion in valuation. The deal volume saw a 4 per cent increase over the same period a year ago, while the deal size of investments declined by 9 per cent as big ticket investments remained cautious.

In November, there was only one big-ticket investment worth over USD 100 million. The month also recorded the lowest PE volume in last 4.6 years and the lowest in last 28 months in terms of value, the report said.

India Resurgence Fund, promoted by Piramal Enterprises Ltd and Bain Capital Credit, invested USD 156 million in Chennai-based Archean Group's marine chemicals business -- the biggest deal of the month.

Some other key deals announced in November are: Shunwei Capital's investment of USD 50 million in startup Fashnear Technologies, and TPG Growth's USD 42 million investment in non-banking finance company Ess Kay Fincorp Ltd, among others.

Sectorally, startup, banking and financial services, IT and ITES and e-commerce led the PE activity by capturing 90 per cent of the total deal size in November, the report said.

"PE/VCs reported deals aggregating to USD 0.5 billion in November 2018 as compared to USD 2.4 billion in November 2017. Barring the USD 1.8 billion PE investment in Axis bank in November 2017, November 2018 witnessed a 25 per cent decline in deal values and 39 per cent decline in deal volumes," Grant Thornton India LLP Director Pankaj Chopda said.

The decline in the deal volumes can be attributed to longer deal completion cycles and cautious approach following the upcoming national elections and also global uncertainties, added Chopda.