Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: 3.9
Article rating: 5.0
Article rating: 4.5
Article rating: 5.0
Article rating: 4.0
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.3
Article rating: 1.0
Article rating: No rating
RSS

News

PE/VC investments decline by 60% in February

Author: IANS/Wednesday, March 7, 2018/Categories: Economy

PE/VC investments decline by 60% in February

New Delhi, March 7 - Absence of any mega deals -- with value greater than $300 million -- led to a sharp decline in private equity and venture capital (PE/VC) investments by 60% to $1.4 billion during February, a report said on March 7.

According to EY's PE monthly deal tracker, February recorded investments worth $1.4 billion across 63 deals.

"Exits also recorded a significant decline of over 70% in terms of value and over 50 per cent in terms of volume, primarily on account of fewer open market exits," said the PE monthly deal tracker report.

The report pointed out that unlike the trend seen over the past few months, there were no mega deals in February.

"The largest investment in February 2018 was worth $170 million, IIFL's purchase of 30% stake in NSDL e-governance Infrastructure from IDBI Bank," said the report.

This investment was followed by ASK Group's $155 million investment in Shriram properties to set up a fund for investing into affordable, mid-housing and distressed assets, it added.

"Deal activity clearly suggests that PE/VC investors have taken a breather in February 2018 after a hectic January. Global volatility spiked in early February, equity indices globally corrected, and India was no exception," said Vivek Soni, Partner and Leader for Private Equity Advisory, EY.

"Given the recent announcements by the US on trade tariffs, global volatility could continue well into March. While PE/VC investing is about the long-term, volatility does impact investor sentiment and consequently the timing of investments and exits," he added.

Soni said data suggested that the underlying trend of a steady increase in value of PE/VC investments, exits and average deal size remained intact. 

The deal tracker report revealed that in terms of stages of investments, expansion/growth investments recorded the highest value of investments in February, with 22 deals worth $720 million.

In terms of volume, start-up/early stage investing recorded the highest number of deals (30 deals worth $295 million).

There were three buyouts worth $86 million in February, said the report.

Sector-wise, financial services led the activity in February 2018 -- with $447 million invested across 13 deals -- followed by technology, with $296 million invested across 14 deals.

The month under review recorded 12 exits worth $234 million, a decrease in both value and volume compared to the previous month as well as February 2017, said the EY deal tracker.

"The largest exit in February 2018 saw Apollo Global selling its investment in Logix Group's projects in Noida back to the promoters for about $74 million, marking its first exit from a real estate project since it started investing in the sector on its own in 2016," it said.

In addition, February 2018 witnessed three fund raises worth $153 million.

Last month, PE/VC investments had doubled to $3.5 billion across 51 deals -- an increase of 98 per cent over last year -- primarily on account of a large investment worth $1.7 billion by a group of investors including GIC, KKR, CPPIB, Ontario Municipal Employees Retirement System, Carmignac Group and Premji Invest in India's premier mortgage lender HDFC.

Print Rate this article:
No rating

Number of views (154)/Comments (0)

Kavita Giridhar Mallya

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free