India’s power industry sees a rise of 55% in deal activity in Q2 2019

16 July 2019 (Last Updated July 16th, 2019 15:18)

India’s power industry sees a rise of 55% in deal activity in Q2 2019

India’s power industry saw a rise of 55% in overall deal activity during Q2 2019, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 31 deals worth $3.73bn were announced in Q2 2019, compared to the last four-quarter average of 20 deals.

M&A was the leading category in the quarter with 16 deals which accounted for 51.6% of all deals.

In second place was venture financing with 11 deals, followed by private equity with four transactions, respectively accounting for 35.5% and 12.9% of overall deal activity in the country’s power industry during the quarter.

In terms of value of deals, M&A was the leading deal category in India’s power industry with total deals worth $2.79bn, while private equity and venture financing deals totalled $935.71m and $1.27m, respectively.

India power industry deals in Q2 2019: Top deals

The top five power deals accounted for 84.1% of the overall value during Q2 2019.

The combined value of the top five power industry deals stood at $3.14bn, against the overall value of $3.73bn recorded for the quarter. The top announced India power industry deal tracked by GlobalData in Q2 2019 was India Grid Trust’s $717.57m asset transaction with Sterlite Power Transmission.

In second place was the $689.76m asset transaction with IL&FS Wind Energy by GAIL (India) and in third place was Adani Power’s $689.09m asset transaction with Axis Bank and GMR Generation Assets.

The $544.78m acquisition of Sterlite Grid 2 by Sterlite Investment Managers and Abu Dhabi Investment Authority and GIC’s private equity deal with Greenko Energies for $495m held fourth and fifth positions, respectively.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.