India PE deals lowest since 2009

PE investment fell nearly 20 percent, and secondary deals dominated the landscape.

Private equity investment in India in 2013 fell 18.5 percent year-on-year to $7.5 billion, the lowest level in four years, according to data from research firm Venture Intelligence.

Deal volume was down to 384 from 484 in 2012. The data includes infrastructure and venture capital deals but excludes real estate.

Secondary transactions accounted for the four largest deals during 2013 as global firms acquired majority stakes from existing investors. 

India’s top deal was Kohlberg Kravis Roberts’ $460 million purchase of a controlling stake in Alliance Tire Group from Warburg Pincus.

The IT sector drew the largest amount of investment, which totaled $2.3 billion across 154 deals. Notable deals in this sector included Baring Asia’s $443 million buyout of publicly-listed Hexaware Technologies and Apax Partners’ $420 million buyout of GlobalLogic.

Healthcare/life sciences was the second largest sector, pulling in $1.2 billion across 57 deals, Venture data showed. The top three transactions involved secondary purchases from existing investors: KKR’s $200 million purchase of a stake in Gland Pharma from Evolvence India Life Sciences Fund; the Carlyle Group’s $161 million purchase of Avenue Capital’s stake in the hospital Medicity; and Bain Capital’s $113 million purchase of the Blackstone Group’s stake in Emcure Pharmaceuticals.

Buyout deals accounted for less than 5 percent of the total number of private equity investments and 27 percent of the total value. Venture Capital investments accounted for 53 percent of deal volume and 11 percent of total value.