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Infra sector investments by SWFs & Pensions; IT deals buoy Q1’14 PE investments to $2.3 B

Deal Value almost doubles compared to year ago; Flat compared to Oct-Dec’13 quarter

Private Equity firms invested about $2,273 million across 89 deals during the quarter ended March 2014, according to early data from Venture Intelligence (http://www.ventureintelligence.in), a research service focused on private company financials, transactions and valuations in India. The investment amount was almost twice that invested in the same period last year ($1,179 million across 103 transactions) and marginally higher than that invested during the immediate previous quarter ($2,221 million being invested across 86 transactions). Note: The above figures do not include PE investments in Real Estate.
 
There were five PE investments worth $100 million or more (with three above $200 million) during Q1’14 compared to just one such transaction in the same period last year and seven during the immediate previous quarter, the Venture Intelligence analysis showed.

The top two PE transactions during Q1’14 involved Canadian and Middle Eastern investors teaming up to invest into infrastructure operating companies in India.
Canadian pension funds - Canada Pension Plan Investment Board (CPPIB) and Caisse de depot et placement du Quebec (CDPQ) - teamed up with Omani sovereign wealth fund State General Reserve Fund (SGRF) agreed to invest a total of Rs.2,000 crore in L&T IDPL, the infrastructure development arm of engineering major Larsen & Toubro. The second largest PE deal during Q1'14 featured Canadian pension fund PSP Investments (along with IDFC PE) partnering Abu Dhabi's National Energy Company (Taqa) to buy out two hydel power plants operated by Jaiprakash Power Ventures in the state of Himachal Pradesh. (PSP and IDFC will put up a total of Rs.1,960 crore for their 39% and 10% stake respectively, while Taqa will own 51%.)

The next four largest transactions were from the IT & ITES industry including the $260 million buyout of the Aditya Birla Group’s BPO unit Minacs by CX Partners and Capital Square Partners; the $143 million fifth round raised by e-commerce firm Snapdeal.com (led by strategic investor eBay along with existing VC investors) and General Atlantic’s $100 million commitment to healthcare software firm Citius IT. eBay again teamed up with existing PE/VC investors  to provide $90 million in follow-on financing to online classified services firm Quikr. While IT & ITES companies accounted for $895 million, Energy and Engg. & Construction companies vaulted to the second and third favourite spots attracting $414 million and $324 million respectively, the Venture Intelligence data showed.

Venture Capital type investments accounted 51 deals (or 57% of the investments in volume terms) during Q1’14. Late Stage companies accounted for 14% of the PE investments, while listed company investments accounted for 12%.
 
Venture Intelligence is the leading provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.

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