Private equity investments into India have more than doubled in the first half of current calendar year to $11.82 billion from $5.43 billion in same period last year, according to latest data released by Refinitiv, a London Stock Exchange Group business.

This strong show in the first half could be partly attributed to the base effect arising from muted performance in the first wave of April-June last year, when the Covid- induced lockdown severely impacted economic activity across the world. India saw a record private equity investments of $35 billion flow into last calendar year — a milestone that will be difficult to surpass this calendar year despite the strong start in the first half, say private equity industry observers.

In the latest June quarter (April-June 2021), PE investments grew over 77 per cent to $7.55 billion from $4.23 billion in the previous quarter this year. In April-June 2020, PE flows came in at $1.51 billion. The number of deals in the latest quarter under review saw an increase to 296 deals from 276 deals in the previous quarter. Last year in the April-June quarter, the number of deals stood at 182.

Computer software companies continue to attract maximum private equity interest with $4.5 billion invested in the first half of this calendar year.

In terms of industry specific investments, internet specific, computer software and financial services have seen the maximum investment is coming in first half of the year 2021. Sum of equity invested in the internet specific sector have increased by 73.2 per cent, with number of deals rising from 149 (H1 2020) to 201 (H1 2021). Computer software (261 per cent year-on-year), financial services (44 per cent year-on-year), medical health (64 per cent year on year), as well as consumer related (64 per cent year-on-year) have witnessed a rise of sum invested as compared to H1 last year.

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M&As at 3 year high

Among the top deals included Think & Learn, Bundl Technologies, Mohalla Tech, Sporta Technologies, and Axelia Solutions.

Mergers and acquisitions activity in India reached a three-year high of $ 55.1 billion in the first half of 2021, a 37.4 per cent increase in value compared to the first half of 2020. Average deal value during the first half of 2021 totalled $101 million, up 12.2 per cent year on year, as 11 deals above $1 billion were announced in the first half of this year.

“Driven by ample liquidity, robust demand and investor appetite, as well as relatively low interest rates, deal making activity involving India sustained its momentum. Second quarter volume this year grew 6.8 per cent in value and 13.5 per cent up by number of announced deals compared to the first quarter of 2021, pushing overall India M&A activity to reach a three-year high with $55.1 billion during the first half of 2021— a 37.4 per cent increase in value from a year ago,” said Elaine Tan, Senior Analyst, Deals Intelligence at Refinitiv.

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