PE deal activity down 20%: Report

Private equity deal activity saw a decline of 20 per ent in the first six months of this calendar year, as compared to the period a year ago.

The total deal value thus far stood at $28.3 billion, according to a report by Grant Thornton.

The report titled 'Half Yearly Dealtracker 2012', said that even as the deal value dropped, momentum continued with total 544 transactions as compared to 508 in the same period last year "First half witnessed $14.4 billion of domestic internal mergers and restructuring driven by Sesa Sterlite and TechMahindra-Satyam mergers. If we exclude the domestic internal mergers and restructuring, the deal value decined by 60 per cent in the first half," Grant Thornton said.

Going ahead, India Inc's deal activity is expected to remain robust as the remaining half of 2012 is likely to see activities across sectors like IT/ ITeS, pharma and healthcare, auto components, media, telecom and financial services.

A sector-wise analysis showed that healthcare and internet appeared to be the most bullish to investors.

"Government's intervention on policy issues, especially tax regulations and FDI in sectors like retail, aviation will play a role in driving large transactions, especially inbound deals," Grant Thornton India Partner (Transaction Advisory Services) Raja Lahiri said.

KEY DEALS

* HSBC acquired RBS' retail and commercial banking business in India

* Piramal Group's acquisition of Decision Resources Group

* Mitsui Sumitomo Insurance's investment into Max New York Life Insurance

* Morgan Stanley's investment in Continuum Energy

* Accel and Tiger Global's investments in Flipkart

* Tamasek's investment in Godrej Consumer Products

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