Private Equity Investments in India Soar 39% to $10.9 Billion in January-September

The private equity investments in India saw the total sum of equity invested reach $10.9 billion in the first nine months of 2024, up by 38.9 percent from last year, according to a report released yesterday.

India is still one of the most vibrant markets for financial sponsorship in Asia Pacific, accounting for at least 28 per cent of the equity money invested during the period in question-a market share that rose from 16 per cent in the same period last year, says a report by LSEG, a global financial markets infrastructure and data provider.

Growth is being largely fuelled by growing consumption, digital transformation, and infrastructure development, making it diverse across different sectors, including healthcare, technology, and consumer services, according to Elaine Tan, Senior Manager, LSEG Deals Intelligence.

It has set India up as a significant player in the global private equity landscape for the balance of 2019 with its resilient IPO market that survives global downturns and provides an active ecosystem for start-ups.

On a related note, Tan said, "The anticipated global trend of monetary easing could further boost private equity activity as financial sponsors find cheaper funding and deploy dry powder more effectively.".

Meanwhile, the India equity capital markets raised $49.2 billion in the first nine months this year or the January-September period-a whopping 115 per cent growth from a year ago. The number of equity capital market offerings also saw a year-on-year increase of 61 percent, as indicated by a report by LSEG.

Initial public offerings from Indian issuers raised $9.2 billion, 96% more compared with the same period last year, the highest first nine-month total since 2021. The number of IPOs leaped by 63% on a yearly basis. The frenzy is only expected to continue with a strong pipeline of IPOs such as Swiggy, Hyundai Motors, and LG Electronics preparing to list their Indian units.