Private equity investments reached $10.11 bn in India during 2011, taking their total investment over the past five years to about $47 billion, says PE research firm research firm Venture Intelligence in a new report.
In 2011, investments worth $10.1 billion were announced by way of 441 deals, compared to $8.1 billion through 362 deals in the previous year.
Year-on-year deal activity has witnessed an upsurge despite PE investments witnessing a decline in the October-December period on a quarter-on-quarter basis.
PE investment in October-December 2011 declined to about $1.4 billion across 105 deals from $1.8 billion across 88 transactions in the same period of 2010, largely due to economic uncertainty and the decline in public markets, the report said.
"The sheer amount of uninvested capital lying with PE funds and the increasingly attractive valuations available -- including in the listed companies segment -- points to a turnaround in the quarters ahead," Arun Natarajan, CEO, Venture Intelligence, said.
The largest PE investment announced during 2011 was the Rs 3,650 crore commitment by Bain Capital and Singapore's GIC in Hero Investments, the Hero Group holding firm which bought out Honda Motors' 26-per cent stake in listed two-wheeler maker Hero Honda.