Private equity investment in the July-September quarter reached $3.1 billion, registering a growth of 47 per cent over the corresponding period last year driven by the Flipkart deal, says a report.

According to the assurance, tax and advisory firm Grant Thornton, private equity investments witnessed a significant improvement both in terms of value (47 per cent) as well as volume (37 per cent) in the July-September quarter this year.

In the quarter, PE investments amounted to $3.12 billion through 157 deals, while in the corresponding period last year there were 115 such transactions worth $2.12 billion.

“Private equity witnessed a 47 per cent increase in values led by the billion dollar investment in Flipkart and 37 per cent increase in volumes driven by the IT&ITeS sector with over 40 per cent share in total deal volume,” the report said.

There were several big ticket deals in the quarter. As many as 15 investments were over $50 million each, including two over $100 million and one billion dollar investment, the report said. In the third quarter of 2013 there were only nine investments worth over $50 million each.

Sectorwise, IT/ITES, mainly driven by e-commerce, dominated PE deal values and volumes and going forward the sectors that are expected to see renewed deal activity include infrastructure, energy, consumer and financial services.

“We expect valuations to go up given the renewed business sentiments which in our view, would be both a challenge and an opportunity for dealmakers to close deals in the coming quarters,” Grant Thornton India Partner Raja Lahiri said.

“We believe that this momentum of deal activity will continue to increase and we look forward to closing the year on a high note,” Lahiri added.

PE investment so far in 2014 stood higher at $8.4 billion as against $7.8 billion in 2013, with 38 per cent higher volumes in 2014 as compared to 2013, led by the technology sector.

The article appeared in the Economic Times. The article can be found here.