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In an Annual Deals Report CY 2016 released by News Corp VCCEdge, the financial research platform of News Corp VCCircle, Maharashtra topped the chart of states attracting PE/VC funding by recording 303 deals worth $ 4462 mn, in year 2016.

However city-wise, Bengaluru pipped Mumbai in terms of number of PE/VC deals with the former recording 277 deals worth $2493 million. while Mumbai outscoring Bengaluru in value terms, registering 227 deals worth $4,338 million.

Maharashtra also leads in registering maximum number of M&A deals, with Haryana coming in second in value terms.

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Key Highlights of the Report –

State and City-wise Fund Flows

Private Equity/ Venture Capital

  • With 303 deals worth $ 4462 mn., Maharashtra topped the chart of states attracting private equity and venture capital investments.
  • Karnataka came in second having attracted funding worth $ 2518 million from 280 deals.
  • Delhi NCR came in third with 190 deals worth $ 1302 mn.
  • City-wise, Bengaluru pipped Mumbai in terms of number of PE/VC deals with the former recording 277 deals worth $ 2493 mn. while Mumbai outscoring Bengaluru in value terms, registering 227 deals worth $4338 million.
  • Coming in third was New Delhi witnessed 165 deals amounting to $1253 million. while neighboring Gurgaon registered 110 deals worth $1001 million.

Mergers & Acquisitions

  • Maharashtra topped the state tally in M&A deals registered with 243 deals to the tune of $ 23911 mn.
  • Haryana came in second in value terms with 66 deals worth $ 11837 million. while Karnataka was second in terms of number of M&A deals registered with 130 deals amounting to $ 2305 million.
  • Mumbai pipped Bengaluru both in terms of number of deals and deal value with 198 deals worth $23,643 million as against Bengaluru’s 126 deals worth $2,282 million.

Sector Watch: Where have the Funds been Invested?

Private Equity/ Venture Capital

  • IT rules the roost: Information Technology continued to attract a dominant share of private equity investments with 766 deals amounting to $ 3158 mn. as investors reposed faith on dotcoms. Compared to CY2015, the sector saw a dip of 20% in terms of number of deals and 50% in terms of deal value. Internet software and services & application software companies attracted a total of 714 investments in CY2016, accounting for 93% of the total investments in the sector
  • Consumer Discretionary sector came in second in terms of number of deals with 228 deals amounting to $1582 mn. E-Retail witnessed 107 deals and drove the deal activity during the year.
  • Industrial enterprises came in second in terms of deal value registering 86 deals worth $ 2992 mn. while Financials bagged 81 deals worth $ 2977 mn. with $ 2023 mn. coming in the form of pure private equity.

Mergers & Acquisitions

  • Information Technology witnessed maximum M&A deals with 288 deals amounting to $ 4667 mn., followed by theConsumer Discretionary, Industrials and Financial sectors with 170 deals ($ 4243 mn.), 138 deals ($ 3345 mn.) and 119 deals ($ 11427 mn.) respectively.
  • M&As in the information technology sector was led by Internet software and services  (192) and IT consulting companies (46)
  • Internet Retails with 25 deals drives the overall M&A transactions in the consumer discretionary sector.

Exits

  • The Financial sector led the exit activity with 56 deals amounting to $ 1726 mn., majorly contributed by Real Estate and other diversified financial companies
  • Exits in Information Technology sector came in second followed by Consumer Discretionary with 55 and 39 deals amounting to $ 1284 mn. and $ 1396 mn. respectively. Internet Software & Services with 39 exits in the Information Technology sector accounting for 70% of the total exit activity in the Information Technology space

Equity Capital Market (ECM) Funding

  • Industrials witnessed maximum ECM activity in CY2016 with 27 deals worth $ 542 mn., majorly in the sub-industries such as Construction & Engineering , Industrial Machinery & Trading companies & distributors
  • Coming in second is the Consumer Discretionary sector with 23 deals amounting to $ 724 mn. Apparel, Accessories & Luxury good and Textiles were the major contributor to the ECM deal activity in the Consumer Discretionary sector

About VCCEdge
VCCEdge is an online financial research platform of the VCCircle Network which is owned by the global diversified media, news, education and information services company – News Corp. VCCEdge offers information on mergers and acquisitions, private equity and venture capital transactions including deal terms, structures, deal amounts and valuations. It also contains entity information on all companies involved in the transactions including target companies, investors and advisors.

[Top Image – Shutterstock]

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