Private Equity, Venture Capital Investments In India Hit All-Time High Of $8.3 Billion In July: EY
Strong investment activity in infrastructure and real estate drove the overall deal tally, says EY.
Private equity and venture capital investments in India crossed $8 billion in July -- the highest fund infusion in a month by PE/VC funds -- amid strong investment activity in infrastructure and real estate asset classes, an EY report said on Monday.
According to EY's private equity deal tracker, July 2019 recorded investments worth $8.3 billion across 106 deals against $1.8 billion in July 2018 through 70 deals.
The $8.3 billion worth of PE/VC investments in India in July 2019 is the highest value of monthly investments by PE/VC funds ever recorded, eclipsing the previous historical monthly high of $7.1 billion invested in March 2019.Vivek Soni, Partner and National Leader - Private Equity, EY
According to the report, strong investment activity in infrastructure and real estate asset classes drove the overall deal tally as there were $4.7 billion worth of mega deals in the infrastructure sector in July 2019.
"With this, the year to date cumulative PE/VC investments in the Indian infrastructure sector add up to $12 billion, which is greater than the total investments received by the sector in previous seven years put together," Soni said.
PE/VC investments in Indian infrastructure so far this year exceed the total PE/VC investment made in the next three largest sectors (financial services, real estate and technology), Soni said.
"On the back of these mega PE/VC investments in Indian infrastructure we are already at 90 percent of the historical high PE/VC investments recorded in 2018. 2019 is well on its course to be the best year for Indian PE/VC investments," Soni added.
According to the report, Brookfield-Reliance Jio Infocomm Ltd.'s $3.7-billion deal is the largest ever PE/VC deal in India, surpassing the $2.5 billion investment made by Softbank in Flipkart in 2017.
Baring PE Asia's $800 million buyout of Citius Tech was the other major deal during July.
July 2019 recorded 14 large deals (deals of value greater than $100 million) aggregating $7 billion compared to three large deals worth $402 million in July 2018.