Private equity (PE) investments saw a marginal fall of 4 per cent in the country to USD 1.14 billion in May in terms of deal value, according to a report by Grant Thornton. There were 48 PE deals worth USD 1.138 billion in May, while in the corresponding month of last year, there were 53 such transactions worth USD 1.18 billion, said the report. “Despite witnessing a fall of 87 per cent in M&A (merger and acquisition) deal values and 27 per cent drop in M&A deal volumes, PE deals remained on par with the activity recorded in May 2018,” it added.
During the month, start-ups accounted for more than half of the total PE investment volumes and topped the investment value chart capturing 52 per cent and 29 per cent, respectively.
The month witnessed a USD 200-million investment in Grofers, making it one of the largest investments in the online grocery retailing segment, the report added. It also said that the investment resulted in the e-commerce sector capturing 20 per cent of PE values, while this deal alone accounted for 18 per cent of total PE deal values.
Apart from start-up and e-commerce, energy and banking sectors also witnessed big-ticket investments of over USD 50 million.
Grant Thornton India Director Pankaj Chopda said, “May being the month of election results, the uncertainty in deal landscape is expected to soon fade away in the coming months.”
Another term for the government will only increase the expectations to streamline the existing reforms and introduce new reforms making it conducive for renewed deal activity in the coming months, he added.