Outlier deals appear to rule the market - VCCEdge Q4 2016 Deal Report

[VCCEdge] [News Corp VCCircle] VCCEdge, the financial research platform of VCCircle Network, has released the Deal report for the quarter ending December 2016. The report presents a data-driven overview of PE, M&A and Equity markets deals in India, with sector and region-wise analysis. In Q4 2016, outlier deals appear to rule the market and have skewed aggregate numbers across investment, exits & M&As. Private equity investment value dipped by 31% to $3.6 billion in the Q4 CY16 as compared to $5.1 billion a year ago, while it is 29% higher than the previous quarter. The quarter recorded a marginal drop in the overall number of deals across all investor types as compared to the previous quarter. Deal making activity declined by 38% to 286 deals as compared to 461 for the same period last year, and 3% lower than the already dismal previous quarter. Number of deals has declined across all investor types, On Y-o-Y basis, angel / Seed and VC activity has declined considerably by 36% and 48% respectively in Q4 2016, as compared to the same period last year. An investment of $ 1.6 billion in Towercom Infrastructure Pvt. Ltd by a PE Fund investor skewed the overall deal value for private equity investments, however the deal values have declined significantly for VC & Placement deals by 68% & 76% respectively as compared to the same period last year. Information Technology still rules the deal activity, others like consumer discretionary, healthcare, and financials are significant contributors. The decline in the number of deals across all sectors remains secular and worrying. PE Exits Private Equity exits saw significant decline, down 37% from 78 deals in Q4 last year and 27% from 67 deals in the immediate previous quarter. Although open market has lead the exit activity in the past, but in Q4 CY16 M&A was recorded as the preferred exit route with 22 deals amounting for $501 million, followed by 17 open market deals with the corresponding deal value of $283 million. M&As M&A deals value stays strong, increased 163% (Y-o-Y) to $21bn on the back of the acquisition of Essar Oil Ltd. Domestic deals continued to dominate the M&A activity, contributing 60% to the total M&A transactions announced last quarter while inbound deals lead the value. IT again dominated the M&A charts in terms of activity, accounting for one in four deals last quarter. Deal activity has dropped marginally across sectors with substantial increase in value within, energy, healthcare, industrial and consumer discretionary sector. ECM The equity capital market was dominated by IPOs in Q4 2016 both by activity and value. IPOs remained robust and continued to be investors preferred mode to raise capital. The up-down trend continues in the equity market. In Q4 2016, the number of deals recorded were 22, raising ~$ 1.3 billion, as compared to 15 companies that raised $2.1 billion during the same time period an year ago, indicating a higher ticket-size. VCCEdge is a leading player in providing Indian centric financial, deal and company information. The platform has in-depth profiles of private and public companies, deals including private equity, venture capital, M&A, equity capital market issues and debt offerings, key developments, and detailed data on investors and their portfolios. VCCEdge provides information on demand and helps reduce research time, for users including, strategy managers, investors, bankers and consultants. [Download report] For more information on our products, please feel free to reach out to Vijay Prakash Rai (vijay.prakash@vccircle.com, +91-9987526393). [vccircle] A-83, Ground Floor, Sector - 2, Noida - 201301, Phone: 0120-4171111 Mosaic Media Ventures Pvt. Ltd., A-83, Ground Floor, Sector 2, Noida, UP 201301, India [Unsubscribe here]