|
July
11, 2006
Chennai, India
Arun Natarajan
CEO
Tel: +91-44-45534303
Email:
arun@ventureintelligence.in
PE firms invest $2.1-B in India during Apr-Jun ‘06
Chennai, India:
Private Equity firms invested about US$2,085 million across 76 deals
during the quarter ended June 2006,
according to a study by Venture Intelligence (http://www.ventureintelligence.in),
an information and research service focused on Private Equity in
India.
The amount invested during the latest quarter was five times higher
than that during the same period last year (which witnessed 40 deals
totaling $407 million) and 1.5 times that during the January-March
2006 quarter (which had witnessed 69 investments worth $1,384
million).
Total investments by
Private Equity investors during the first six months of 2006 has
touched $3.5 billion
– 1.6 times the $2.2 billion
invested in the entire of 2005,
the Venture
Intelligence data reveals.
|
Top PE Investments – Apr-Jun 2006 |
|
Company |
Sector |
Amount
(US$ M) |
Investors |
|
Flextronics
Software Systems
|
IT Services |
900 |
KKR
|
|
Indiabulls
Financial Services
|
Financial
Services |
143 |
Farallon |
|
L&T-Infrastructure
|
Infrastructure |
124 |
JP Morgan
Chase, IDFC PE/Old Lane
|
|
GMR
Infrastructure
|
Infrastructure |
56 |
ICICI
Ventures |
|
International
Tractors
|
Tractors |
45 |
3i |
Source: Venture
Intelligence
With 17 deals worth
about $200 million, Manufacturing overtook the Information
Technology & IT-Enabled Services (IT & ITES) as the favorite
industry among PE investors during the latest quarter. Engineering &
Construction companies emerged as the third most favorite industry
attracting $372 million across thirteen deals.
“While PE interest
in Manufacturing was growing rapidly right through 2005, this is the
first quarter in which investments in this industry has actually
overtaken the number of deals in IT,”
Natarajan said.
Other industries that witnessed significant interest
from PE investors during the quarter included Banking & Financial
Services and Food & Beverages.
Source: Venture
Intelligence
Like in the past
several quarters, the latest quarter too witnessed a strong focus on
investments in late stage and listed companies. These two categories
together accounted for a 60% of all PE deals in the latest quarter
compared to the 49% in the immediate previous quarter, the Venture
Intelligence study reveals. However, the number of Late Stage
(including pre-IPO) deals overtook the number of “PIPE” (Private
Investment in Public Enterprises) deals during the latest quarter.
Early and Growth Stage companies accounted for 30% of PE deals (in
volume terms) during the period, the Venture Intelligence study
showed.
Source: Venture Intelligence
“Given that the main
competition to PE in India over the last 18 months have been the
public markets – something which caused several deals to fall
through due to mismatch in valuation expectations – the correction
of the is likely to encourage some PE investors, who chose to not to
participate in the highly competitive late-stage segment over the
last few months, to become more active now,” Natarajan said. “The
sheer size of the funds lined up specifically for India will ensure
that the momentum in the PE segment continues uninterrupted.”
About Venture
Intelligence India
Venture
Intelligence India, a division of Chennai, India-based TSJ Media
Pvt. Ltd., is the leading source of information on private equity
and venture capital in India and Indian-founded companies worldwide.
For more information, please visit
http://www.ventureintelligence.in
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