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April 10, 2006
Chennai, India
Arun Natarajan
CEO
Tel: +91-44-45534303
Email: arun@ventureintelligence.in
PE & VC
firms invest $1.4-B in India during Jan-Mar 2006
Average deal size climbed to
$20 million in the quarter thanks to a perk in real estate investments, reveals
a study by Venture Intelligence India.
Chennai, India:
Private Equity and Venture Capital firms invested about US$1.4 billion in 69
Indian companies during the quarter ended March 2006,
according to study by Venture Intelligence India (http://www.ventureintelligence.in).
The amount invested during the latest quarter was over 3.5 times that during the
same period last year and 1.7 times that during the October-December 2005
quarter.
“The
average PE deal size has gone up to about $20 million from $14 million during
the same period last year,” said Arun Natarajan of Venture Intelligence India.
“Apart from mega deals like Temasek’s investment in Tata Tele Services, the
increasing investments by PE firms in the Real Estate industry as well as in
mature IT, BPO and Manufacturing companies has contributed to the rise in deal
sizes,” he added.
Unlike in the past several quarters, the January-March 2006
witnessed a strong up tick in the number of VC type investments (vis-ŕ-vis PE
investments in late stage and listed companies). The Venture Intelligence India
study revealed that the period witnessed the number of Early Stage investments
(at 16) nearing the number of “PIPE“ transactions (at 18). (PIPE – or Private
Investment in Public Enterprise - transactions are investments by PE firms in
publicly listed companies). Companies in the Growth Stage and Late Stage
attracted 10 and 16 investments each.
With 22 deals worth about $558 million (including Temasek’s $360
million reported investment in Tata TeleServices), the IT & ITES industry
received the most number of investments during the January-March 2006 quarter.
Within IT & ITES, PE & VC firms favored companies in sectors like Online &
Mobile Services and IT Services. “The half-a-dozen investments made by top rung
Silicon Valley VC firms like Kleiner Perkins, Sequoia, DFJ and Norwest in Indian
consumer Internet and Mobile services companies during the latest quarter has
provided a strong boost to early stage technology companies in the country,”
Natarajan said. After IT & ITES, PE firms favored investments in industries like
Manufacturing (11 deals) and Real Estate (eight deals).
Private Equity and Venture Capital investors translated their
strong interest in India’s booming Real Estate industry into actual deals during
the first quarter of 2006. After announcing new funds for real estate during
2005, PE firms made at least eight investments worth about $350 million
investments during the January-March quarter, the Venture Intelligence India
study revealed.
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,
venture capital and M&A deals in India and Indian-founded companies worldwide.
For more information, please visit
http://www.ventureintelligence.in
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