Private equity investments continue upward trend in India: Report

NEW DELHI: Continuing an upward trend in private equity (PE) investments, India Inc saw 154 deals at $2.5 billion in the month of February despite lower values, a new report showed on Tuesday.

The top deal of the month, Mizuho Bank's investment in Kisetsu Saison India, instilled confidence in the domestic market, contributing to nearly 21 per cent of the mergers and acquisitions (M&A) deal activity, according to Grant Thornton Bharat's report.

"India's deal market in February reflected stability amid turbulent global conditions. While M&A activity saw a significant decrease in value, PE investments continued an upward trend, albeit with lower values," said Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat.

Looking ahead, despite short-term volatility, strong fundamentals and economic recovery are poised to revive investor confidence in India, Vijetha added.

The Indian M&A space recorded 38 deals at $670 milion in February, reflecting a 7 per cent decrease in volumes. The PE space witnessed 106 deals at $0.8 billion.

While PE activity recorded the third-highest monthly deals in the past year, it marked the lowest monthly values since August 2020.

The biggest deal was Consortium of Investor's investment of $95 million in Capillary Technologies in the IT and ITeS sector.

Start-ups commanded a significant portion, representing 37 per cent of total deal volumes and 19 per cent of values in February, said the report.

Consumer retail and enterprise application segments within the start-up sector contributed substantially, constituting 40 per cent of sector's deal volumes.

In the automotive sector, deal volumes reached their second-highest point since July 2023, fuelled by investments in electric vehicles, totalling $69 million out of the total automotive industry deal value of $102 million, the report mentioned.