PE/VC investments in India drop 19 pc to USD 26.4 bln in Jan-June
The investments were higher when compared with the July-December 2024 period's USD 23.8 billion, as per the report by industry lobby grouping IVCA and consultancy firm EY.
In terms of number of transactions, 593 deals in January-June 2025 were lower than the 704 in the year-ago period and 649 transactions in the second half of 2024, it said.
'While early signals such as strong GST collections, the recent rate cut by the Reserve Bank of India, and the IPO pipeline are encouraging, the outlook is cautiously optimistic given the concerns on earnings growth and the US-India FTA discussions that are stretching timelines," the consultancy firm's partner Vivek Soni said.
He opined that the second half of 2025 could see higher investment activity on better earnings performance by companies and also on culmination of the India-US free trade agreement.
Pure-play PE/VC investments excluding the real estate and infrastructure sectors came at USD 18.3 billion, which was 3 per cent lower compared to the USD 18.9 billion in year-ago period, and 13 per cent higher compared to the USD 16.2 billion in July-December 2024.
There were 60 large deals of USD 100 million and above during the reporting period, with the USD 1.5 billion buy of New Mountain Capital into Access Healthcare Services being the largest, the report said.
The six months saw USD 11.6 billion of exits by such funds, which was almost the same as the year-ago period, but 31 per cent down when compared to the USD 16.8 billion in second half of 2024.
PE and VC funds raised USD 8.4 billion across 54 funds during the six months, which was higher both on-year and also from the preceding half of 2024. PTI AA HVA
(This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments
First Published:
Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
6 minutes ago
- Business Standard
US tariffs pose near-term challenges for auto component makers: ACMA
The decision to impose high tariffs on Indian goods by the US presents near-term challenges for the auto component makers, underscoring the importance of enhancing the sector's competitiveness and exploring new and diversified markets, industry body ACMA said on Thursday. On August 6, the US announced an additional 25 per cent tariff on all Indian imports, on top of an existing 25 per cent duty, taking the total to 50 per cent from August 27. "The recent decision by the US to impose higher and additional tariffs on certain imports from India, including auto components, underscores the shifting landscape of global trade," ACMA President Shradha Suri Marwah said in a statement. While this development presents near-term headwinds, for Indian exporters, it also underscores the importance of enhancing our sector's competitiveness, strengthening value addition, and exploring new and diversified markets, she added. The US is a significant trade partner of the Indian auto components industry. In FY 2024-25, it accounted for 27 per cent of the USD 22.9 billion auto components exports from India and 7 per cent of the USD 22.4 billion imports of auto components into India. ACMA is confident that the long-standing and strategic trade relationship between India and the US will serve as a strong foundation for continued dialogue and resolution, Marwah noted. "We appreciate the proactive stance of the Government of India in addressing the issue and remain hopeful that bilateral engagement will lead to constructive outcomes," she added. At the same time, this development reinforces the importance of building greater self-reliance, enhancing domestic value addition, and accelerating innovation within the sector, Marwah said. ACMA remains committed to working closely with the government and industry stakeholders to ensure India's auto component industry remains competitive, resilient, and future-ready, she stated. The Automotive Component Manufacturers Association of India (ACMA) has over 1,100 manufacturers contributing more than 90 per cent of the auto component industry's turnover in the organised sector. In FY2025, the combined turnover of the auto component industry stood at USD 80.2 billion, with USD 22.9 billion in exports and a trade surplus of over USD 450 million. EY India Partner & Automotive Tax Leader Saurabh Agarwal stated the recent imposition of higher US tariffs presents a significant, albeit anticipated, challenge for Indian auto component manufacturers. While a 25 per cent duty was already in effect for the sector since May 3, 2025, and the additional reciprocal 25 per cent tariff effective August 2025 is not to apply to the majority of the automotive sector (as the majority of the automotive sector is excluded from reciprocal tariffs). However, even the initial 25 per cent duty imposed on the automotive sector by the US fundamentally alters the sector's competitive landscape for US exports in the short term. "This means we need to quickly adjust our plans to protect our strong export growth, especially since the US was one of our biggest markets for auto parts in FY2025," he noted. To lessen this impact, Indian manufacturers should actively look into setting up some production closer to the US, he added. Countries like Mexico and Canada, thanks to the USMCA trade agreement, allow Indian parts to enter the US without extra taxes if they meet certain local content rules, he said. This makes them attractive places to move part of our manufacturing to serve the US market, Agarwal said. At the same time, it's crucial to aggressively expand into other markets, he noted. "The new trade agreement with the UK, signed recently, gives us immediate tax-free access for most auto parts, which is a big advantage. We also need to push hard for a quick trade deal with the European Union, using the success of the UK agreement to help us," he said. Beyond that, the growing demand in developing countries in Asia, Africa, and Latin America offers huge potential for long-term growth, he said. "By focusing on these new markets and making specialised, high-value parts that aren't tied to traditional engines, we can turn this challenge into a chance to become even more competitive globally and achieve lasting growth," Agarwal said.
&w=3840&q=100)
Business Standard
6 minutes ago
- Business Standard
Scrapping of US-sanctioned tanker in India shows dark fleet pain
The sale of a US-sanctioned tanker being pulled apart in India includes extended payment terms and measures to shield the identity of the owner, unusual clauses that point to growing pressure on older dark fleet vessels as sanctions enforcement tightens. Contract II — built almost three decades ago and sanctioned in 2019 under the name Jasmine for its involvement in the Iranian oil trade — beached in late June at Alang, a ship-breaking center in western India that has become a hot spot for dark-fleet vessels. More such ships have turned up at the hub over the past months, as penalties make it harder to keep old tankers in the illicit oil trade. An eight-page sale document seen by Bloomberg, a rare glimpse at the financial terms around a sanctioned ship's demolition, includes details of a 180-day period for payment, far longer than what people familiar with the ship-scrapping business described as the industry standard of a few days or weeks. The buyer, listed as Shantamani Enterprise LLP in the contract dated May 20, can wire-transfer partial payments, interest free, over the period of almost six months. 'No seller would accept to wait for his money so long after delivery,' said Andrew Wilson, head of research at BRS Shipbrokers, who reviewed parts of the contract. 'This indicates that the seller needs to get rid of this ship rapidly.' Bimco, a global shipping organization that creates standard contracts, said a buyer would usually make a deposit and then pay what's left of the purchase price no later than three banking days after delivery has been decided. Two calls to Shantamani went unanswered and the company didn't respond to an email with a list of questions about the purchase. The US and European Union have repeatedly added more ships to their sanction lists for supporting Russian, Iranian and Venezuelan oil exports. A year ago, there were 191 sanctioned tankers, while the tally is now at 886, or 78% of the dark fleet, according to BRS. Older sanctioned tankers, with no chance of taking on mainstream trades, now either have to compete with younger ships in the blacklisted flotilla, or else head for the breakers. Selling at a Discount The document lists Thousand Miles Shipmanagement Corp. as the seller of the vessel — a company with a registered address in the Seychelles that's linked to other US-sanctioned entities, but has no online presence or contact details. Brokers that deal with ship scrapping will sometimes set up a special-purpose vehicle to handle the final delivery of vessels sent for demolition, but the use of shell companies to shield owners is also common with dark-fleet tankers. Industry participants questioned by Bloomberg did not have any knowledge of Thousand Miles. Bank account details are almost always listed in the document too, according to industry sources. However, that information is absent from the Contract II document, which lists the payment price at 14.04 million United Arab Emirates dirhams ($3.82 million). UAE dirhams are not commonly used as currency for such deals, far more frequently settled in US dollars, they added. They asked not to be named as the matter is sensitive The payment terms and use of a shell company are measures intended to make it harder for the transaction to be traced back, while sweetening the deal enough for would-be buyers to take the risk, according to Charlie Brown, a senior adviser at United Against Nuclear Iran. It fits a trend in the trade of blacklisted ships, said Brown, who focuses on maritime sanctions enforcement at the advocacy group. As with most such deals, the tanker was sold at a discount relative to the market, based on the rate for scrap steel in India at the time the document was drafted. That could make sense for both seller and buyer, with Thousand Miles likely keen to get rid of blacklisted tonnage, and the scrapyard seeking to keep margins healthy and stay ahead of the competition at a time when the sector is battling a downturn. The process of pulling apart Contract II started this week, according to the people familiar with the industry. Demolition typically begins around a month after a ship has beached to allow for fuel removal and official authorization for scrapping.
Mint
6 minutes ago
- Mint
Trump tariffs unleash chaos! Is cash king as uncertainty in Indian stock market heightens?
Trump tariffs on India: From 25% to 50% — the tariffs imposed by US President Donald Trump have doubled in just one week, leaving investors worried and confused. With no resolution in sight to an India-US trade deal, and neither side ready to budge, the question remains: Should investors pivot to cash until clarity emerges? Trump's erratic trade policies have put investors on edge. Analysts see a limited impact on the economy and sector-specific drawdowns, instead of the entire market-wide selloff. Goldman Sachs had previously estimated a potential direct impact of around 0.3 percentage points (annualised) on India's real GDP growth, following Trump's surprise announcement of a 25% tariff on Indian imports. Now, if the new additional duty (including exclusions) is enforced, it would constitute a potential incremental drag of around another 0.3pp, the brokerage added. The Indian stock market reacted to the additional Trump tariffs with a 0.6% decline. Sensex shed over 500 points while Nifty briefly dipped below 24,400. Explaining the rationale behind Trump tariffs, Vinit Bolinjkar, Head of Research at Ventura Securities, said everything Trump tariffs are a double-edged sword. One, they want to make Russia irrelevant — geopolitically, they want a grip on everything. "And now, they're trying to do something similar with India and China." "The second reason is that their economy is a complete mess. Other than cutting back on spending, they really have no other option," Bolinjakr said. These tariffs, he explains, slow down domestic consumption (because buying goods at a 20% premium is tough) and pressure global exporters at the same time. "If the US were to scale back its debt without imposing external pressure, consumption would fall — but other countries would keep growing and making profits. By imposing tariffs, they try to force a slowdown everywhere else too." Their idea is to make the US economy look relatively better by weakening others, he added. Indian mutual funds have already been sitting on a vast amount of cash holdings. While the figure declined substantially in the month of June, a significant portion of this capital was deployed into primary market issuances, raising questions about whether institutional investors see fewer compelling opportunities in the secondary market, and if retail investors should take a cue. Bolinjkar said that keeping all this uncertainty in mind, I believe it's best to stay away from the markets for now. We might see a short-term relief rally next week — but that should be used to pair positions, reshuffle portfolios, not to add more, he advised. "This is not the time to buy more. If you're holding, fine, don't book unnecessary losses. But if you've got loss-making positions, consider taking them for carry-forward loss. Restructure your portfolio for strength — but without putting new money to work. It's definitely not a time to average," he said. Similarly, Om Ghawalkar, Market Analyst, also said that holding a higher cash allocation does make sense while we wait for more clarity on trade policy, but remember that thoughtful stock selection remains essential. "Rising trade tensions often fuel risk-off moves, particularly in export-heavy sectors and stocks with substantial international exposure. In such environments, holding higher cash levels is seen as a defensive strategy to preserve capital and maintain tactical flexibility. This cash-heavy posture allows investors to seize opportunities as clarity emerges quickly," Ghawalkar added. He, however, advised against steering clear of equities completely. Instead, concentrate on specific areas of the market, such as domestic defensives or high-quality large-caps, he opined. Meanwhile, G Chokalingham, Founder, Equinomics Research, believes that investors can continue to remain in domestic-focused sectors for now, and consider moving to cash positions only if the service sector is disrupted. "IT service export is about $140 billion to the US. So, if there is any attempt to disrupt that through some restrictions, then one has to be concerned about the whole market," Chokalingham added. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
