New Delhi, May 22 -- Private equity (PE) and venture capital (VC) deal activity remained flat during the five-day period through May 22, though total deal value improved on the back of big-ticket transactions in the food and renewable energy sectors, data collated by VCCircle showed.
The week ended Friday saw total deal value jump to around $769 million (Rs 7,366 crore), up more than 80% from $425 million in the corresponding period last week. However, deal volumes failed to keep pace, with 21 Indian companies raising PE-VC funding, unchanged from the previous week. Over the past five weeks, the number of transactions has remained stuck in the 20-23 range.
On the mergers and acquisitions (M&A) front, activity improved to 10 deals, up from eight in each of the previous two weeks.
The top two deals accounted for nearly three-fifths of the total deal value during the week, as per VCCircle's analysis.
In the largest PE-VC deal, the UK's development finance institution British International Investment (BII) and Denmark's Copenhagen Infrastructure Partners (CIP) jointly committed about $300 million to newly launched renewable energy projects financier North Star.
The second-largest cheque went to Iscon Balaji Foods, which raised $150 million from global private equity firm Advent International. The transaction marked the processed food maker and exporter's Series A funding round. Prior to this, homegrown PE firm 360 One Asset had infused about $70 million in the company a few months ago. The latest infusion completes Iscon's Series A round.
These were the only two deals above the $100 million mark during the week.
The World Bank's private sector investment arm, International Finance Corporation (IFC), also made a notable bet during the week, infusing $95 million (about Rs 920 crore) in Aditya Birla Capital. As part of the same fundraising exercise, the NBFC approved a preferential issue of shares to two entities: Grasim Industries and Suryaja Investment.
TVS Motor chairman Sudarshan Venu family office, TVS Venu, also struck a financial services deal. The Chennai-headquartered group will acquire a 9.9% stake in scheduled commercial lender Jana Small Finance Bank on a fully diluted basis.
Travel-fintech startup Scapia, too, raised over $60 million in a funding round led by US-based venture capital firm General Catalyst.
The remaining deals were valued below $50 million. Only two companies, Solfin Sustainable Finance and VEM Technologies, managed to raise mid-sized rounds in the $19-30 million range.
Meanwhile, M&A activity improved to 10 deals in the week.
The largest takeover transaction during the week came from the insurance sector. Prudential agreed to acquire a 75% stake in Bharti Life Insurance Company from Bharti Life Ventures and 360 ONE Asset Management as part of a strategic repositioning of its India operations.
Dalmia Bharat's wholly-owned subsidiary, Dalmia Cement (Bharat) Ltd, also announced a similarly large acquisition. It will acquire cement plants previously operated by Jaiprakash Associates, recently acquired by the Adani Group through the insolvency process, in a deal valued at Rs 2,850 crore (about $297 million).
Four other transactions during the week also crossed the $100 million mark.
Mumbai-based technology services company LTM Ltd offered to acquire the technology and consulting services business of staffing firm Randstad in parts of Europe and Australia, while mother-and-childcare hospital chain Cloudnine agreed to acquire the maternity, childcare and fertility businesses of Apollo Health & Lifestyle Ltd in a cash-and-stock deal.
Adani Ports and Special Economic Zone Ltd (APSEZ) signed a deal to acquire Jaypee Fertilizers & Industries Ltd (JFIL) as part of the broader resolution plan for bankrupt Jaiprakash Associates Ltd (JAL).
Separately, Mumbai-listed MAN Industries (India) Ltd, which manufactures large-diameter steel pipes, acquired Saudi Arabia-based National Pipe Company Ltd for $102 million in cash.
The week also saw four additional M&A transactions, including three with undisclosed deal values.
Published by HT Digital Content Services with permission from VC Circle.