Indian PE Volume Drops 28%

MUMBAI (Reuters) – The value of private equity deals in India fell 28 percent in September as the size of transactions shrunk because of the global markets turmoil, an independent industry tracking firm said on Monday.

Private equity firms struck 116 deals worth $3 billion in July to September, compared with 115 deals worth $4.2 billion in the same period last year, with deals of more than $100 million dropping by a third, Venture Intelligence said.

A stock market slump also dried up deals ahead of initial public offers, Chief Executive Arun Natarajan said.

There were six deals of more than $100 million each, with JPMorgan’s $250 million investment in coffee shop chain Cafe Coffee Day, topping the chart, he said.

In comparison, there were nine deals in the year-earlier period of over $100 million, with the top being a $700 million transaction.

“The pre-IPO market has dried up,” Natarajan said. Pre-IPO placements of shares and buyouts together comprised about 8 percent of total private equity investments in India in 2007, he said.

Total investments in the first nine months of 2008 stood at 330 deals worth $9.7 billion, against $9.5 billion invested across 296 deals in the same period of last year, Venture Intelligence said.

(Reporting by Kaustav Roy; Editing by Ranjit Gangadharan)