PE funds bet big on India, pour $7 bn in H1: report

 Private equity funds are betting high on India and its growth outlook as they committed $7.1 billion in the first half of 2015 in segments like banking–finance, IT&ES and pharmaceuticals, says a report.

The private equity inflows in the first half of this year were 38 per cent higher in value terms as compared to $5.11 billion in the same period of 2014.

In volume terms, the number of deals jumped 62 per cent to 460 in the first half of 2015 compared to the same period last year, the report by industry body Assocham said. However, value of merger and acquisitions during the period this year fell to $15.8 billion in 277 deals, from $17.2 billion in 269 deals in the first half of 2014.

The M&As had aggregated 255 for the corresponding period of 2013 worth $ 12 billion.
The top three sectors dominating the M&A scenario in the first half of 2015 were IT & ITES (38 per cent); Banking & Financial Services (14 per cent); and Pharma, Healthcare & Biotech (11 per cent).

“While the M&A opportunities remain robust, especially when there are companies on the block with high level of leverage, enhanced interest by the private equity players certainly remains a noteworthy point,” Assocham Secretary General D S Rawat said.