Private Equity-Backed Buyout Deal Flow in India – April 2016

by Vanessa Hui

  • 25 Apr 2016
  • PE

Preqin Private Equity Online features detailed information on the 1,142 private equity-backed buyout deals in India, valued at an aggregate $43bn, since 2006. As seen in the chart below, 2015 proved to be a strong year: 98 private equity-backed buyout deals were completed at aggregate value of $6.9bn. This represents the highest aggregate value of private equity deals in the country in the past 10 years, a result of four of the top 10 deals in India since 2006 being announced in 2015.

In 2015, private equity-backed buyout deals in India accounted for 38% and 14% of the number and aggregate value of Asian deals respectively, representing the largest number in the region, but ranking third in terms of aggregate value. China witnessed 64 deals valued at an aggregate $24bn, while 14 South Korea-focused buyout deals were valued at a total of $8.5bn.

With respect to industry focus in 2015, just over a fifth of Indian private equity-backed buyout deals were in the industrials sector, followed by business services (16%) and consumer & retail (15%). In terms of deal value, the business services industry dominated with 31% of the total, followed by energy & utilities and healthcare accounting for 9% each.

Q1 2016 witnessed 29 private equity-backed buyout deals in India valued at an aggregate $1.2bn, representing a 16% increase in number of deals and an 11% decrease in aggregate value compared with the previous quarter. This includes the second largest Indian private equity-backed buyout deal ever, with Blackstone in a definitive agreement to acquire an 84% stake in Bengaluru-based Mphasis Limited for $825mn from Hewlett Packard Enterprise, surpassed only by the $1.22bn acquisition of Patni by Apax Partners-backed iGate in 2011.

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