Private equity investments in India have increased 12 per cent in value terms from USD9.5bn in 2012 to USD10.68bn in 2013, according to data released by VCCEdge, financial data platform of VCCircle.com.
Deal volume on the other hand dipped 13 per cent to 655 deals from 751 deals in 2012, VCCEdge data shows.
"This shows private equity investors have been investing larger monies in fewer companies in 2013, an indication of winning companies attracting larger capital," says Sahad PV, founder and editor, VCCircle.com. "PE investors have been choosy."
Financials, consumer discretionary, and information technology were the most targeted sectors with investments worth USD2.7bn, USD1.8bn, and USD1.6bn, respectively. Together, the three sectors accounted for nearly 58 per cent of the total private equity capital invested in 2013.
The USD1.26bn investment by Qatar Foundation Endowment in Partners in New Delhi based Bharti Airtel was the biggest deal announced during the year. This is followed by the USD470m investment in Alliance Tire Group by KKR India Advisors for a 90 per cent stake.
Private equity exit transactions in 2013 amounted to about USD3.6bn coming from 158 exit deals compared to the USD4.86bn worth of exits spread across 172 deals in CY2012.
However, the industry saw some of the larger PE exits like Warburg Pincus exiting Alliance Tire Group and TPG exiting Shriram Transport Finance.
As for mergers and acquisitions in India in CY2013, the deal value increased by about 25 per cent to USD26.17bn as against USD20.93bn recorded in 2012. Deal volume, however, inched up only from 761 deals to 781 deals during the period.
Energy and materials sectors witnessed the maximum M&A value with deals worth USD6.02bn and USD5.23bn, respectively. Together, they accounted for nearly 43 per cent of the total M&A deal value seen during the year.
The biggest M&A deal recorded in 2013 was the acquisition of Rovuma Offshore Area 1 of Anadarko Petroleum by ONGC Videsh for a total consideration of USD2.64bn. This was closely followed by the USD2.51bn (in cash and stock) acquisition of Holcim India by Ambuja Cements.
