PE investments decline 67% in Q3 of 2013

By Team YS|11th Oct 2013
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The recent $160 million raised by Flipkart was greeted with much enthusiasm among the startup world. However, according to Venture Intelligence, a research and analysis firm that monitors PE/VC investments in the country, Q3 of 2013 has seen PE investments decline by as high as 67% compared to the same period last year.


Rupee-Bundles

Private Equity firms invested about $1,300 million across 75 deals during the quarter ended September 2013. While in the same period last year, $3,910 million was invested across 126 transactions. Including the latest numbers, PE investments made since January 2013 stands at $5,059 million across 281 investments – which is again 38% lower to the corresponding period of 2012 which had $8,152 million across 373 investments.A falling rupee, lack of initiatives and incentives by the Government and a weak fiscal policy are the reasons for this cautionary, to some extent even negative sentiment among the investors. Credit rating agencies such as Fitch and Standard & Poor’s(S&P) had downgraded the Indian economy rating, which has affected the outlook of international investors.

There were only two PE investments worth over $100 million during Q3’ 13 compared to five such transactions in the same period last year and eight during the immediate previous quarter, the Venture Intelligence analysis showed. Baring Private Equity Asia’s Rs 1,687 crore ($260 million) buyout of 41.8% stake in publicly listed IT Services firm Hexaware Technologies was the biggest PE transaction. Followed by e-tailer Flipkart’s raising an additional $200 million from existing investors including Tiger Global, Accel India, Iconiq Capital and South Africa-based strategic investor Naspers. Third in line was Snapdeal.com, which managed to get the $75 million commitment from Softbank to another e-tailer.

IT & ITES sectors lead the investments this quarter -- $582 million across 25 investments. Manufacturing is second with $185 million across 9 investments and Healthcare & Life Sciences is third in line with $140 million across 14 investments. Here is a list PE investments for Q3, 2013.

Top 3 PE Investments in the IT Space

Company

Investors

Amount(US$M)

Date

Flipkart

 Tiger Global, Accel India, Iconiq Capital, Others

200

Jul-13

Hexaware Technologies

 Baring Asia

260

Aug-13

Snapdeal.com

 SoftBank Corp

75

Aug-13

Top 2 PE Investments in the Manufacturing Space

Company

Investors

Amount(US$M)

Date

Agile Electric

 Blackstone, Others

74

Jul-13

Sansera Engineering

 Citi

56

Jul-13

Top 3 PE Investments in the Healthcare Space

Company

Investors

Amount(US$M)

Date

Rainbow Hospitals

 CDC Group, Abraaj Capital

17.5

Aug-13

Symbiotec Pharmalab

 Actis

16.67

Sep-13

Vikram Hospital & Heart Care

 Multiples PE

31.9

Jul-13

Top 3 PE Investments in the Real Estate Space

Company

Investors

Amount(US$M)

Date

3C Company

 Red Fort Capital

57.6

Sep-13

ATS Group

 ASK Group

24.7

Jul-13

Mahindra Lifespaces

 StanChart RE

100

Jul-13

 Source : Venture Intelligence