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Infrastructure and information technology sectors have propelled private equity (PE) investments in India to $2.3 billion in the first three months of the calendar year. This is nearly double the investment of $1.2 billion in the corresponding period last year, according to Venture Intelligence, a research service focused on private company financials, transactions and valuations in India.
PE firms invested about $2.3 billion across 89 deals during the quarter ended March as against $1.2 billion across 103 transactions, and marginally higher than that invested during the immediate previous quarter ($2.2 billion across 86 transactions). The data does not include PE investments in real estate.
While IT and ITeS companies accounted for $895 million, energy and engineering and construction companies vaulted to the second and third favourite spots attracting $414 million and $324 million, respectively, the Venture Intelligence data showed.
There were five PE investments worth $100 million or more with three above $200 million during the first quarter compared with one in the same period last year and seven during the immediate previous quarter, the analysis said.
The top two PE transactions during the first quarter involved Canadian and West Asian investors teaming up to invest into infrastructure operating companies in India.
Canadian pension funds — Canada Pension Plan Investment Board and Caisse de depot et placement du Quebec (CDPQ) — teamed up with Omani sovereign wealth fund State General Reserve Fund to invest a total of ₹2,000 crore in L&T IDPL.
The largest transaction in the IT and ITeS industry was the $260-million buyout of the Aditya Birla Group’s BPO unit Minacs by CX Partners and Capital Square Partners.
Venture capital investments accounted for 51 deals or 57 per cent of the investments in volume terms during the first quarter. Late-stage companies accounted for 14 per cent of the PE investments while listed company investments accounted for 12 per cent, the report said.
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