India PE deal value up, but volume down in 2013

Private equity investments in India have increased 12 percent in value terms from $9.5 billion in 2012 to $10.68 billion in 2013, according to annual transactions data released by VCCEdge, financial data platform of VCCircle.com. Deal volume on the other hand dipped 13 percent to 655 deals from 751 deals in 2012, VCCEdge data showed.

PRESS RELEASE

Private equity investments in India have increased 12% in value terms from $9.5 billion in 2012 to $10.68 billion in 2013, according to annual transactions data released by VCCEdge, financial data platform of VCCircle.com.
Deal Volume on the other hand dipped 13% to 655 deals from 751 deals in 2012, VCCEdge data showed.
“This shows private equity investors have been investing larger monies in fewer companies in 2013, an indication of winning companies attracting larger capital,” Sahad P.V., Founder & Editor, VCCircle.com, said. “PE investors have been choosy.”
Financials, Consumer Discretionary, and Information Technology were the most targeted sectors with investments worth $2.7 billion, $1.8 billion, and $1.6 billion, respectively. Together, the three sectors accounted for nearly 58% of the total private equity capital invested in 2013, the VCCEdge data showed.
The $1.26 billion investment by Qatar Foundation Endowment in Partners in New Delhi based Bharti Airtel Ltd. was the biggest deal announced during the year. This is followed by the $470 million investment in Alliance Tire Group by KKR India Advisors for a 90% stake.
Private Equity Exits
Private equity exit transactions in 2013 amounted to about $3.6 billion coming from 158 exit deals compared to the $4.86 billion worth of exits spread across 172 deals in CY2012.
However, the industry saw some of the larger PE exits like Warburg Pincus exiting Alliance Tire Group and TPG exiting Shriram Transport Finance.
Sector breakdown of private equity deals in 2013
Deal Value Avg. Deal Value

Volume ($ mm) ($ mm)
Consumer Discretionary 152 1,813.76 16
Consumer Staples 26 247.63 11
Energy 2 4.45 2
Financials 99 2,770.73 31
Health Care 73 1,264.44 21
Industrials 60 676.80 13
Information Technology 210 1,642.15 12
Materials 15 288.73 29
Telecommunication Services 1 1,264 1,264
Utilities 17 711 59
Total 655 10,683.66

Mergers & Acquisitions:
As for mergers & acquisitions in India in CY2013, the deal value increased by about 25% to $26.17 billion as against $20.93 billion recorded in 2012, VCCEdge data showed. Deal volume, however, inched up only from 761 deals to 781 deals during the period.
Energy and Materials sectors witnessed the maximum M&A value with deals worth $6.02 billion and $5.23 billion, respectively. Together, they accounted for nearly 43% of the total M&A deal value seen during the year.
The biggest M&A deal recorded in 2013 was the acquisition of Rovuma Offshore Area 1 of Anadarko Petroleum Corp. by ONGC Videsh Ltd. for a total consideration of $2.64 billion. This was closely followed by the $2.51 billion (in cash & stock) acquisition of Holcim India Pvt. Ltd. by Ambuja Cements.
Sector breakdown of M&A deals in 2013 –
Deal Value Avg. Deal Value

Volume ($ mm) ($ mm)
Consumer Discretionary 144 1,096.19 8
Consumer Staples 44 280.25 6
Energy 26 6,020.8 232
Financials 110 2,202.52 20
Health Care 63 3,305.84 52
Industrials 149 3,452.72 23
Information Technology 117 1,712.41 15
Materials 85 5,235.59 62
Telecommunication Services 12 2,011.86 168
Utilities 31 863.15 28
Total 781 26,181.33

About VCCEdge
VCCEdge is India’s leading financial data service for dealmakers. It’s a fully hosted platform with a comprehensive database of C/PE/M&A deals, IPOs, directories, private and public company information, financials, shareholding structures, professionals & key developments related to companies.
To know more, visit us at http://www.vccedge.com or write to us at sales@vccedge.com.
About The VCCircle Network
The VCCircle Network, founded in 2005, is India’s leading online financial media and data group. Owned by Mosaic Media Ventures Pvt Ltd, the VCCircle Network is headquartered in New Delhi with presence in Mumbai and Bangalore. The VCCircle Network is relied upon by an influential global community of deal makers, entrepreneurs and professionals for trusted content and information related to Indian investments, M&A, venture capital, private equity, investment banking, public equity, and emerging companies and sectors.

Media contacts: Rashi Sinha: rashi.sinha@vccircle.com (M) +91-9873-4244-41

SOURCE VCCircle.com