At $2.2 billion inflows, this is the lowest private equity inflow since 2018. (Representative)
Mumbai:
According to a report, private equity inflows plunged 75.4 per cent to $2.2 billion in the March quarter amid global macroeconomic and geopolitical headwinds, making it the sixth consecutive quarterly decline.
At $2.2 billion inflows, this is the lowest private equity investment in the country since 2018, when it stood at $1.7 billion, according to data tabulated by financial markets data and insights provider Refinitiv, an LSEG business unit.
Internet-specific and computer software companies continued to attract the largest share of private equity capital, the report said. However, its share declined to 58 per cent from 75 per cent in the same period last year, mainly due to lower deals.
With turbulent market conditions and uncertainty, private equity fundraising activity also saw a 41 per cent drop this year compared to the first quarter of 2022 and a 45 per cent decline sequentially.
On a sequential basis, the Q1 decline was 31.9 percent year-over-year when it was at $3.2 billion and 75.4 percent annualized from $8.83 billion. There was also a decline in terms of volume as the total number of deals fell 19.9 percent to 282 from 352 in the fourth quarter of 2022 and 30.9 percent lower than 408 deals in the first quarter of 2022, said senior analyst Alain Tan. agency.
Computer software and Internet-specific companies continued to attract maximum investor interest with $392.3 million, down 85.2 percent from 88 deals, and $870.9 million, down 78.3 percent, in the period under review.
Flows to the consumer-related sector fell 83.9 percent and transportation fell 72.3 percent. However, industries serving the energy and industrial sectors grew by 361 percent, and so did medical and health by 310.5 percent.
Similarly, PE fundraising also declined by 51.3 per cent to $2.58 billion from $4.72 billion in the first quarter.
The top ten deals in the quarter included Girnar Insurance Brokers ($149.6M), SonaBlu Precision Forgings ($149.6M), Biocon ($129.2M), Mintify ($110M), FreshtoHome Foods ($104M), Gram Power India ($101.5M) . million), Finovation Tech Solutions ($100 million), Cell Industries ($60 million), Texo Charge Zone ($54 million), Silver Consumer Electricals ($48.4 million), Pan Healthcare ($48.3 million) and Ti Clean Mobility ($48.3 million).
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