PE Funds deals surge to $1.2 bn in April: Thornton

PTI Updated - May 23, 2013 at 05:36 PM.

Private Equity deals surged 106 per cent to $1.2 billion in April through 48 transactions, including Singapore Investment’s buying stake in Kotak Mahindra Bank, says a report.

According to audit and advisory firm Grant Thornton, the total PE deals during the month were valued at $1,250 million through 48 transactions, as against $605 million in April 2012, from 37 deals.

The average deal size was $26.03 million, it said.

Grant Thornton India LLP Partner, Transaction Advisory Services, Raja Lahiri said: “We are also witnessing increased focus by the PE Funds on “exit” and increase in secondary transactions and case in point was the exit of Warburg Pincus from ATG Tires by selling its stake to KKR PE.”

A sector-wise analysis shows that manufacturing sector attracted deals worth $659 million, accounting for 53 per cent of deal values, followed by banking and financial services ($334 million, 27 per cent), It and ITeS ($87 million, 7 per cent), real estate ($45 million, 4 per cent) and pharma and healthcare ($33 million, 3 per cent).

The top five PE deals accounted for 79 per cent of the total value.

The top two PE deal of the month was KKR acquiring the controlling stake (90 per cent) in global tyre maker Alliance Tire Group (ATG) from US-based Warburg Pincus for $650 million, followed by government of Singapore Investment Corporation buying out 3 per cent stake in Kotak Mahindra Bank for $239 million, the report said.

Published on May 23, 2013 12:06