At $15.2 Billion, 2016 is 2nd Biggest Year for PE investments after 2015, Venture Intelligence data shows
Private Equity investors bet $15.2 Billion
across 620 deals (and 585 individual companies) in 2016 making it the second
biggest year for such investments in India (by both value and volume) after
2015 (which had witnessed $17.3 Billion being invested across 775 transactions
and 683 companies). These figures from Venture Intelligence, India’s longest
serving research service focused on private company financials, transactions
and valuations, include Venture Capital investments, but exclude PE investments
in Real Estate.
Infrastructure investments - notably led
by Canada headquartered investors - dominated the list of Big Ticket investments
during 2016. Canada’s Brookfield committed $1.65 Billion to buy a majority
stake in telecom tower firm Reliance Infratel; pension fund CDPQ along with
others invested $850 million in Tata Power’s SPV Resurgent Power; while Fairfax
Holdings invested over $300 million each in Bangalore International Airport and
Sanmar Chemicals.
TOP PRIVATE EQUITY INVESTMENTS BY VALUE IN
2016
Company
|
Sector
|
Amount
(US$M) |
Investors
|
Date
|
Reliance Infratel
|
Telecom Towers
|
1,650
|
Brookfield
|
Oct-16
|
MphasiS
|
IT Services & BPO
|
1,100
|
Blackstone
|
Apr-16
|
Resurgent Power
|
Power Projects
|
850
|
CDPQ, KIA, SGRF, Others
|
Jun-16
|
BIAL
|
Airport
|
370
|
Fairfax Holdings
|
Mar-16
|
Sanmar Group
|
Chemicals
|
300
|
Fairfax Holdings
|
Apr-16
|
GE Capital Services
|
Commercial Lending
|
300
|
AION Capital, Others
|
Mar-16
|
Paytm / One97
|
Mobile Wallet &
Commerce
|
300
|
MediaTek, Alibaba, SAIF
|
Aug-16
|
Source: VentureIntelligence.com
Financial Sector Supplants E-Commerce
IT & ITES companies, which attracted
$4.7 Billion (across 359 transactions) in 2016, saw their share of the PE
investment pie decline sharply to 31% (from 45% in 2015). BFSI (Banking,
Financial Services & Insurance) companies that attracted over $2.7 Billion
(across 53 transactions) during 2016, gained the most YoY attracting 18% of the
pie (up from 15% in 2015).
While 2016 saw seven B2C Internet &
Mobile investments with value topping $100 million (half of that in 2015), PE
investors made as many as 11 such bets in the Financial Sector (adding to the
already strong 10 such deals they struck in 2015).
PE INVESTMENTS BY INDUSTRY – RISING SHARE OF BFSI
TOP INVESTMENTS IN FINANCIAL SECTOR IN
2016
Company
|
Sector
|
Amount
(US$M) |
Investors
|
Date
|
GE Capital Services
|
Commercial Loans
|
300
|
AION Capital, Others
|
Mar-16
|
SBI Life
|
Insurance (Life)
|
265
|
Temasek, KKR
|
Dec-16
|
Janalakshmi Financial Services
|
Microfinance
|
210
|
Morgan Stanley, GIC, TPG Capital, Others
|
Feb-16
|
India Infoline Finance
|
NBFC
|
149
|
CDC Group
|
Jul-16
|
Au Housing Finance
|
Mortgage Loans
|
140
|
Partners Group,
Kedaara Capital |
Feb-16
|
Max Financial Services
|
Insurance (Life)
|
140
|
KKR
|
Feb-16
|
Source:
VentureIntelligence.com
TOP INVESTMENTS IN INTERNET & MOBILE
SECTOR IN 2016
Company
|
Sector
|
Amt
(US$M) |
Investors
|
Date
|
Paytm / One97
|
Mobile Wallet &
Commerce
|
300
|
MediaTek, Alibaba, SAIF
|
Aug-16
|
Snapdeal
|
E-Commerce
|
200
|
Ontario Teachers Pension
|
Feb-16
|
Hike
|
Mobile Messaging
|
175
|
Tencent, Foxconn,
Tiger Global |
Aug-16
|
BillDesk
|
Payments Processing
|
171
|
General Atlantic, Temasek
|
Mar-16
|
BigBasket
|
E-Commerce (Groceries)
|
150
|
Abraaj Group, IFC,
Sands Capital, Others |
Mar-16
|
CarTrade
|
Auto Classifieds
|
145
|
Warburg PIncus, Temasek, March Capital
|
Feb-16
|
Source: VentureIntelligence.com
Biggest Year for Buyouts
PE investors bet as much as $4.3 Billion
to acquire controlling stakes in 27 companies - the highest ever tally for
buyout deals in the country (surpassing the $3.2 Billion across 24 companies in
2015). In fact, Buyouts were the only stage of PE investment to register a gain
during 2016 as compared to 2015.
In the largest PE deal of the year (and
the largest single PE investment in India to date), publicly listed Reliance Communications
sold a 51% stake in its tower assets unit Reliance Infratel to Canada's
Brookfield Infrastructure Group for $1.65 Billion (INR 11,000 crore).
US-headquartered PE giant Blackstone
concentrated its only investment bet in India during 2016 (outside of Real
Estate) on buying out Hewlett Packard from its majority holding in listed IT
Services & BPO firm Mphasis via an $1.1 Billion deal. AION Capital
partnered former GE Capital executives Pramod Bhasin and Anil Chawla to buyout the
commercial lending business of GE Capital in India for $300 million.
Mid Market buyouts too buzzed with
activity during the year with 21 deals being struck across sectors like
Healthcare (2 clinics and 1 CRO), Toll Roads (3 deals), BPO (2) and Food &
Beverages (2), the Venture Intelligence analysis showed.
TOP PE BUYOUT DEALS IN 2016
Company
|
Sector
|
Amount
(US$M) |
Investors
|
Date
|
Reliance Infratel
|
Telecom Towers
|
1650
|
Brookfield
|
Oct-16
|
MphasiS
|
IT Services & BPO
|
1100
|
Blackstone
|
Apr-16
|
GE Capital Services
|
NBFC
|
300
|
AION Capital, Others
|
Mar-16
|
Sigma Electric
|
Metal Castings
|
250
|
Argand Partners
|
Oct-16
|
Care Hospitals
|
Hospitals
|
221
|
Abraaj Group
|
Jan-16
|
Au Housing Finance
|
Mortgage Loans
|
140
|
Partners Group,
Kedaara Capital |
Feb-16
|
Source: VentureIntelligence.com
The above data are extracts from the Venture Intelligence 2016 PE Roundup Report based on latest data from the Venture Intelligence PE Deals database. The full Report will be mailed to Venture Intelligence subscribers in the next few days.