Fall in the capital market mirrored itself in the corporate India's private equity transactions, which registered a 23 per cent decline during the year 2008 at $10.59 billion, thanks to the effects of the recent economic downturn.
There were 312 deals in 2008 with a total announced value of $10.59 billion compared with 405 deals with an announced value of $19.03 billion in the year 2007, according to Grant Thornton's latest annual issue. Though there has been a decline in PE deal s but still India Inc braved the downtrend and managed to attract decent number of such deals.
The report further said that the average PE deal value fluctuated from $46.99 million in 2007 to $33.93 million during 2008. There were 28 deals of over $100 million in 2008, while in the year 2007 there were as many as 53 such deals.
The decline in PE transactions was mainly because there was less activity in the second half of the year 2008 on account of global financial crisis. “While the value of PE deals during the first half of 2008 was $7.1 billion, the second half was $3.5 bi llion,'' Grant Thornton said. – PTI
Source: The Hindu