As per a recent report by Grant Thornton, Private Equity (PE) investments witnessed in India in May 2017 have shown a substantial jump compared to May 2016. A rise of 64 percent in value terms was registered in May, with deals worth $963 million being finalised. The report stated that while a total of 67 PE deals worth $963 million were signed in 2017, 74 such transactions worth $587 million were sealed in May 2016.
Further, the report points out that in the first five months of 2017, India recorded 349 PE deals worth $6,402 million, while a total of 421 deals worth $5,487 million were made during the same period in 2016. It is interesting to note that even though the number of PE deals have declined during January-May 2017, the quantum of investment has increased. This indicates that the confidence of global investors in the Indian economy is surging, thanks to the positive regulatory changes being made by the government. Prashant Mehra, Partner, Grant Thornton India, mentioned that the implementation of Goods and Services Tax (GST) is expected to significantly influence investor interest in the country in the coming months.
Information technology (IT), IT-enabled services (ITeS), retail, and consumer sectors are believed to be the primary attractions for PE investors. The report also observes that investments in start-ups in sectors such as enterprise application, logistics, infrastructure, travel, transport, and financial technology have contributed 58 percent of total investment made in May 2017. The month reported one of the largest foreign direct investments (FDI) in the real estate sector when Xander Group’s acquisition of Shriram properties’ Gateway IT Special Economic Zone (SEZ) in Chennai was finalised for $350 million.
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