Private equity investment touched all-time high of USD 21 billion in 2017: Grant Thornton

For private equity (PE) investments in India, year 2017 was a milestone clocking USD 21 billion, the highest yearly value, across 735 transactions, a report said.

"The year recorded a 54 per cent jump in values at USD 21 billion in 2017, despite a 24 per cent decline in volumes. This indicates a significant jump in average deal sizes," the sixth edition of Grant Thornton's The Fourth Wheel 2018 report said here.

The report focuses on PE/VC industry in India and has been produced in association with Indian Private Equity and Venture Capital Association (IVCA), an organisation that works towards promotion of PE/VC firms. The report further reveals that 2017 saw six USD 500 mn plus investments compared to only three in 2016.

It witnessed 25 investments valued between USD 100 mn and USD 400 mn compared to 19 in 2016, signaling the revival of big-ticket investments and larger stake acquisitions. "On the reforms and regulatory front, 2017 was an action-packed year with various initiatives aimed at driving economic stability.

"We believe these efforts will boost long-term investors' confidence and help in creating a platform for a new era of PE/VC activity in Indian corporate landscape, where they take larger roles, higher stakes and greater exposure in the long-run," Grant Thornton India Partner - India Leadership team Harish H V said.

The year 2017 also saw a surge in IPO activity with 37 issues aggregating over USD 10.7 billion, recording almost three times the IPO values of 2016 and most issues witnessing significant over subscriptions.

As per the report, many of the successful IPOs during the year provided a smooth exit for PE funds which is further expected to accelerate PE investments this year. The top 4 IPOs, all in the insurance sector, accounted for 55 per cent of overall IPO equity raised.