Grant Thornton’s PE Dealtracker Report – Jan 2018

Highlights:
 
Corporate India’s deal activity (M&A and PE) bounced back in January 2018 with y-o-y values recording over five-fold increase with marginal increase in the deal volumes. This indicates an increase in big ticket deals in January after a cautious approach last year due to the implementation of economic reforms (GST and IBC).
 
PE investments witnessed a strong 23 per cent growth on account of increased follow-up investment rounds witnessed in this month compared to same period last year.
 
As compared to December 2017, the deal activity in January 2018 nearly doubled at 84 deals from 49 deals. On the other hand, values recorded 10 per cent increase over December 2017.
 
This month PE investment volumes recorded an 8-month high at 84 deals from 86 deals recorded in April 2017.
 
The month was dominated by investments in start-ups which contributed to 52 per cent of total investment volumes. On the other hand, energy & natural resources and real estate sectors witnessed big ticket private equity investment over USD 100 mn together capturing 39 per cent of total PE deal values.
 
Mr. Pankaj Chopda – Director at Grant Thornton India LLP (an assurance, tax and advisory firm) said:
 
“Private equity deals recorded 4 per cent increase in deal volumes and 23 per cent increase in deal value in January 2018 as compared to January 2017. Start-ups continued to rule PE deals by reporting 18 per cent of the total PE deal values (44 transactions contributing to 52 per cent of the PE deal volumes). Opportunities in Banking and Financial, Real Estate and Energy and Natural resources sectors contributed to 57 per cent of the total PE deal values (14 transactions across the three sectors) in January 2018.  Increasing customer penetration in online transactions and increasing solutions to simplify online transactions offered by start-ups  will attract interest in start-ups engaged in retail, fintech, foodtech, on demand services and travel and logistics. Government reforms such as RERA, focus on cleantech and on increasing digital financial transactions will drive the momentum in Banking and Financial, Real Estate and Energy and Natural resources. India specific strategies by global and already present PE firms and funds raised by new players will act as catalyst for PE transactions.”

 


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