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PE investments in India faced a halt in its growth path for the 1st time in six years

PE investments in India declined for the 1st time in six years in CY’08, as entrepreneurs were not willing to settle for lower valuation despite the steep price correction in markets. PE firms invested $10.59 bn over 312 deals in India in CY’08, down 44.35%, from $19.03 bn invested across 405 deals in CY’07. There were only 28 deals of over $100 MM in CY’08 while in CY’07 there were as many as 53 such deals. Decline in PE transactions was mainly because there was less activity in H2CY’08 on account of global financial crisis; the value of PE deals declined to $3.5 bn compared with $7.1 bn in H1CY’08. ARC Financial Services have recently done an analysis on private equity activity in India. To get more details on the report please contact www.arc-fs.com . […]