It turned out to be a mid-summer dream for Indian private equity. Both investments and exits touched a high in May 2018 versus the year-ago month as well as sequentially. In fact, May 2018 saw the highest investments made this calendar year.
The month recorded 52 PE investments totalling $4 billion, or about Rs 27,230 crore. In May 2017, 54 investments totalled $2.8 billion. The value of investments doubled when compared to April 2018, data from the Indian Private Equity & Venture Capital Association (IVCA) shows.
The largest PE investment announced in May 2018 was a $760 million (Rs 5,075 crore) one by Singapore's Temasek, as part of an Rs 14,000 crore buyout of L&T's Electrical and Automation business. Schneider Electric had formed a consortium with Temasek for the transaction.
Temasek was also involved in two more deals that totalled over $100 million during the month - it invested $149 million in AU Small Finance Bank and, along with others, in a Pine Labs deal worth $125 million.
May 2018 was also high in terms of PE and VC exits in terms of value, skewed by the Walmart-Flipkart deal. A total of 22 exits during the month "harvested" $14.5 billion or Rs 97,600 crore during the month. While the number of exits was more in May 2017 at 28, the value was a minuscule $1.2 billion.
The IVCA report for the month says that the Walmart-Flipkart deal was the single largest ticket exit deal in the history of Indian PE-VC - investors harvested $12 billion or Rs 80,800 crore. Investors who exited in Flipkart included Tiger Global, Accel India, SoftBank Corp, Steadview, and Naspers among others.