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Private equities bring $11 bn to India in 2014

The private equity funds pumped in $ 11 billion in Indian companies – up 11% as compared to last year’s $ 10 billion investment. The total M&A volumes was $ 48 billion in India including $ 5 billion of QIPs and initial public offers.

The infotech (IT) & and IT enabled services (ITES) contributed 39% to the total PE values with e-commerce continuing to play a significant role in India’s dealscape.

“The year 2014 clearly witnessed a significant surge in M&A and PE deal activity with an increase of more than 26% compared to 2013 in terms of number of deals. This was largely driven by the resurgence in the business sentiment due to the new government taking charge in May this year,” said Prashant Mehra – Partner at Grant Thornton India LLP, an assurance, tax and advisory firm.

On the outlook for 2015, Mehra said given the current deal making sentiment and deal momentum, India can expect sharp increase in deal activity across sectors especially, healthcare and pharma, IT/ITES, especially, e-commerce and financial services.

“We could also see the turn-around in deal momentum in the infrastructure and infrastructure allied services sector which was subdued in 2014. With the ongoing correction in real estate rentals, retail and consumer sector could also see a thrust in growth and thus a boost in deal activity. Also, private equity funds would continue to focus on exits and a robust IPO market and strong inbound deal interest which is expected in 2015 is expected to help exits,” said he.

Top PE deals of 2014
Investor Investee Sector US$ mn
Morgan Stanley Investment Management, GIC, Accel Partners, DST Global, Iconiq Capital and Sofina Flipkart Online Services Pvt Ltd 1,000.00
Canada Pension Plan Investment Board Kotak Mahindra Bank 366.67
Brookfield Property Partners 6 IT Parks in India 347.00
Capital Square Partners, CX Partners etc Aditya Birla Minacs Worldwide 260.00
Naspers Ltd.; Tiger Global Management; DST Global;
ICONIQ Capital
Flipkart Online Services Pvt Ltd 210.00
Softbank Corp Olacabs 210.00
Warburg Pincus Retail & Consumer 195.60
Temasek, IDFC Alternatives Infrastructure Management 183.00
KKR Infrastructure Management 164.20
Source: GrantThornton Dealtracker

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