Private equity investments dipped 70% in February on a y-o-y basis

MUMBAI: Private equity investments in India dipped 70% in the month of February this year compared to a year ago, shows a data compiled by Four S Services, research and financial consulting firm. The data shows that in the second month of 2013 private equity investments stood at $245.4mn in Indian companies as against $812.9mn a year ago the same month.

The number of deals in February 2013 too declined to 26 against 46 deals recorded a year ago in the same month. In the comparable period, the average deal size fell to $13.6mn from $29.0mn. The year 2013 has so far aggregated $443mn worth of investments, compared to $1.76bn for the same period (Jan-Feb) last year.

The largest deal during the month was the $ 45 mn investment by WestBridge Capital Partners and TA Associates in the diagnostics and pathology services firm Dr Lal PathLabs.

The second largest was that of Macquarie-SBI Infrastructure Fund's 74% stake buy in GMR Jadcherla Expressways for $38.3mn. Norwest Venture Partners, along with the existing investors Multiples and Amansa Capital, picked up stake in the finance company Cholamandalam Investment & Finance for $25mn, by participating in the firm's qualified institutional placement.

Banking and financial services sector topped the investment chart accounting for 34.6% of investments with a deal value of $85mn. Healthcare sector occupied the second slot with $61.5mn (25%) worth of investments across 3 deals. Infrastructure saw deals valuing $38.3mn (15.6%) and manufacturing saw deals of $20.6mn (8.4%), shows data compiled by Four S Services.