PE investments up 27% to $3 bn in Jul-Sep quarter

In terms of cities, Bengaluru outdid the National Capital Region and Mumbai to attract the maximum PE investments with $1.8 billion in 29 deals.

Private equity investments in the country rose 27 per cent to $3.01 billion in the July-September period, the fifth consecutive quarter of upswing, says a PwC report.

A quarterly study of PE investment activity based on data provided by Venture Intelligence, such funds in the third quarter of this year totalled $3.01 billion through 103 deals, according to the PwC MoneyTree India report.

Compared with the same period last year, the value of deals rose by 97 per cent despite a 9 per cent reduction in volume.

In Q3 2013, the value of investments stood at $1.53 billion from 113 deals.

On quarter-on-quarter basis, PE investments registered a growth of 4 per cent in value over the preceding quarter with a 3 per cent drop in volume. In the April-July period, $2.91 billion was invested through 106 deals.

"The overall market sentiment is positive with a strong and clear intent from the government on liberalisation and easing doing business in India," PwC India Private Equity Sanjeev Krishan said.

Moreover, falling inflation and improving economic fundamentals have helped in boosting PE investments, the report added.

"Combined with the enhanced interest in public markets, we also anticipate global strategic investors to look at India with heightened interest, in effect providing multiple routes for both capital raising and exits," Krishan said.

The IT & ITeS have bounced back as the leading sector, attracting $1.64 billion in 56 deals. It is more than two-fold jump as compared with Q2 2014 and two-and-a-half times higher than Q3 2013.

"Growth has been driven by advancements in technology -- increasing adoption of devices like smartphones and tablets, and easy access to Internet has led to rise in online consumer base," PwC India Technology leader Sandeep Ladda said.

The healthcare & life sciences sector emerged second in terms of value with investments totalling $292 million in 11 deals.

In terms of cities, Bengaluru outdid the National Capital Region and Mumbai to attract the maximum PE investments with $1.8 billion in 29 deals.

NCR was the second best with $409 million investment and Mumbai secured third place with $383 million, the report said.