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Indian firms ink private equity deals worth $10.68B in 2013

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January 1
9:31 PM 2014

India-based companies inked up to private equity transactions amounting to $10.68 billion in 2013, The Financial Express reported. Citing data from deal tracking research company VCCEdge, the report said this was an increase of more than 12% in value terms compared to that in 2012 when the transactions totaled only $9.5 billion. However, the report said a 13% decline in the number of deals was recorded in 2013 which only had 655 transactions compared to that of the previous year which had 751.

The report quoted VCCEdge Chief Executive Officer Sharad P V as saying about the results of the study, "Private equity firms have become more discerning and selective in the year went by, and they were not in a rush to invest in India. But quality companies have attracted larger funding."

The findings showed that for 2013, the average deal value went up 31% to $21 million from the previous year's $16 million. Big ticket deals or those transactions which are more than $100 million made up 56% of the total deal value for 2013.

As proof that private equity companies were prepared to pour money in larger amounts in Indian firms, there were 20 private equity deals valued at $6 billion in 2013 as compared to 18 deals worth only $3.4 billion in 2012. From 2012 to 2013, the median deal amount rose 25% from $4 million to $5 million. The study also showed that private equity investors liquidated $3.6 billion worth of investments in 158 deals in the calendar year.

The top five sectors as far as deal value is concerned are financials, consumer discretionary, information technology, healthcare and telecommunications services. The financial sector was able to clinch deals worth $2.771 million, followed by consumer discretionary sector which attracted $1.812 million worth of deals. The IT sector got $1.642 million, healthcare and telecommunication services attracted deals worth $1.264 million each.

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