NEW DELHI: Private equity investments in India have seen a steep drop in the first six months of 2020, as the country's shrinking economy, which has been further buffeted by the ongoing Covid-19 pandemic, has seen transactions drop by as much as 40%. PE investments in the first half of 2020 have come in at about $13 billion, according to data collated by Bain & Co. This, however, does not include the $15.5 billion raised by Jio Platforms, the digital arm of Mukesh Ambani-led Reliance Industries.The plunge in PE investments in 2020 follow a record breaking calendar year 2019, which witnessed more than 1,000 PE and venture capital (VC) transactions valued at $45 billion, the highest in the last decade, making India the second largest deal markin Asia-Pacific.Investment activities witnessed a sharper decline in the second quarter compared with the January-March period, with deals plummeting by almost 60% year-on-year, compared with a 25% decline in the first quarter. 76805496The pandemic has led economic forecasters to project Asia's third-largest economy to contract 5%-5.8% in the current fiscal year that started in April, hurt by low consumer spending and drastically shuttered economic activity.Deals involving investment of at least $100 million dropped to 30 during January-June, compared with 55 transactions in the comparable year-earlier period. Total value of exits declined by about 45% year-on-year, to $3 billion in the first half of 2020. The number of exits fell 35% to about 75. However, there are green shoots that are emerging. VC investments during this six-month period have remained steady, maintaining the levels recorded - $4.3 billion - in the first half of 2019, according to the data.
Sunday, July 5, 2020
PE deals drop 40% in first 6 months of 2020 | Economic Times
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