Karnataka has overtaken Maharashtra in private equity (PE) investments, even as the pace of PE investments in India has slowed down this year after a dream run in 2015, according to the Half-Yearly India Deals report for the first half of 2016v ending June by News Corp VCC Edge.
Karnataka, with 144 deals worth $2.31 billion, pipped Maharashtra with 141 deals worth $1.14 billion. Karnataka’s deal value, too, increased by 33 per cent in spite of a 19 per cent fall in the number of deals in the first half of this calendar year, as compared to the same period a year ago.
PE investments in India, excluding real estate, in the first six months of this calendar year added up to $5.8 billion, almost half of the $10.6 billion recorded during the same period last year.
On a quarterly basis, deal value is down 62 per cent from $6.1 billion to $2.2 billion between the second quarter (Q2) of calendar (CY) 2015 and Q2 of CY16, the lowest investment received in the second quarter since 2013.
Interestingly, the Karnataka leadership helped southern India to seal 199 deals worth $2.5 billion while northern India, in spite of closing 202 deals, notched up a value of just $1.58 billion in the first six months of 2016.
Western India, with 165 deals totalling $1.28 billion, stood the third region-wise, of which 141 deals worth $1.14 billion are contributed by Maharashtra alone. The eastern region, with just six deals worth $85 million, has been ranked fourth. (See chart).
New Delhi, which registered 98 deals worth $508.76 million, came in third in terms of volume while Haryana, which attracted $735 million through 49 deals, was in third in terms of value in the first half of 2016.
Mumbai continues to be the hotbed for mergers and acquisitions while Delhi NCR cornered the private equity activity in the country, the report said, adding that information technology, the financial sector, industries, consumer discretionary and utilities were the top five sectors that attracted significant private equity capital during the quarter.
Rajasthan and Punjab were the main drivers in attracting investor capital into northern India. Punjab saw a growth of 885 per cent in deal value to $154 million in the first half of 2016 as against $15.6 million in the year-ago period. Rajasthan saw a growth of 108 per cent in deal value to $161.58 million in the first half (H1) of CY16 as against $77.76 million in H1 CY15.
