According to Grant Thornton, PE deal values amounted to $1.14 billion through 43 deals in May 2011, compared to $0.26 billion by way of 15 deals during the corresponding month last year
The month of May witnessed the highest number of private equity investment deals in more than three years, attracting $1.4 billion, a global consultancy firm says.
According to Grant Thornton, PE deal values amounted to $1.14 billion through 43 deals in May 2011, compared to $0.26 billion by way of 15 deals during the corresponding month last year.
"PE investment volume has witnessed a significant upsurge during May 2011, with the highest number of deals after more than three years," Grant Thornton India Partner and National Leader-Valuation Services CG Srividya said, adding that "there have been several large-sized deals with four investments valued at over $100 million."
In May 2011, 43 PE investments were witnessed, whereas in May 2010, the figure stood at 15 and in May 2009, the level was just a meagre 13 transactions.
On the merger and acquisition front, there were deals worth $4.22 billion last month by way of 55 transactions, against $8.11 billion through 52 deals in 2010, the report said.
The PE investment value so far this year stands at $4.03 billion, around twice the level it was a year ago ($2.65 billion), whereas the total M&A deal value so far this year is comparable to last year.
The month of May was also a month of big-ticket deals, with the top five PE deals accounting for 57% of the total PE deals value and the top five M&A deals accounted for 79% of the total M&A deals value.
"There have been several high value deals this month, with 4 M&A transactions valued at over a quarter billion. We have also seen several new sectors such as shipping & ports and electrical doing large deals," Srividya said.
The same was the case in the PE space as well, where "there have been several large-sized deals, with four investments valued at over $100 million," Srividya added.
The total value of M&A and PE deals in the month of May 2011, stood at $5.38 billion via 99 deals, compared to $8.60 billion by way of 72 deals in the corresponding month of 2010.
The proceeds of the issue would be utilised to retire its debt and to fun expansion plans
SKIL Infrastructure has filed the draft red herring prospectus (DRHP) with market regulator SEBI for its initial public offer through which it plans to raise Rs1,125 crore.
The proceeds of the issue would be utilised to retire its debt and to fun expansion plans, said SKIL in the draft prospectus.
The Nikhil Gandhi-run infrastructure firm, which has pledged its 38.47% stake in Pipavav Shipyard to secure debt, plans to use Rs800 crore of the IPO proceeds to pay its loan obligations.
As of 31 December 2010, the company has a total outstanding debt of Rs1,490 crore. The company is planning to raise about Rs225 crore from private placement prior to its initial share sale.
SKIL holds 45% stake in Pipavav Shipyard, besides equity interest in various power, SEZ and port projects.
ICICI Securities Ltd, JM Financial, Nomura Holdings Inc, SMC Capitals, IDBI Capital Market Services Ltd and Edelweiss Capital are advising the infrastructure firm on the issue.
The company is engaged in the development of Infrastructure projects, which include the Pipavav Shipyard, Pipavav Railways, Pipavav Expressway and Mumbai SEZ.
Religare Mutual Fund new issue closes on 9th June
Religare Mutual Fund has launched Religare Fixed Maturity Plan-Series VIII-Plan A to F-Plan A (368 Days), a close-ended income scheme.
The investment objective of the scheme is to generate income by investing in a portfolio of debt and money market instruments maturing on or before the date of maturity of the Scheme.
The new issue closes on 9th June. The minimum investment amount is Rs5,000.
CRISIL Short-Term Bond Fund Index is the benchmark index. Nitish Sikand is the fund manger for the Scheme.