IT firms come second in terms of VC funding in Q2
By agencies   |   Monday, 03 October 2005, 19:30 IST
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BANGALORE: Indian and Indian-founded IT and ITeS companies had taken a backseat in the first quarter (April - June 2005) this fiscal in terms of attracting venture capital and private equity investments. But, it has bounced back in second quarter (July - September 2005) in sheer number of deals. The IT and ITeS sector witnessed seven deals worth $75 million during the latest quarter with companies such as Newgen Imaging Systems, Nevis Networks, VisualSoft Technologies, Four Soft and Northgate Technologies raising funds, a business newspaper said. While the sector is not a topper in the amount of funding raised, the increased activity (number of deals) shows that IT & ITeS companies are back on the radar screens of private equity investors. The manufacturing sector came tops with six deals that were right upfront in the amount raised, which was about $100 million. The largest deal in the sector was the buyout of Associated Cement Companies' (ACC) refractory business by ICICI Ventures for about $59.8 million. Other manufacturing companies that rose funding during the quarter include Apar Industries, Hindustan Sanitary Ware & Industries and International Auto, the paper said. The healthcare and textiles sectors, with four deals each, were tied in the third place a little under $100 million. Healthcare firms were led by the $45 million investment by ICICI Ventures and CVC International in Perlecan Pharma. Media and entertainment companies in the fourth place attracted private equity investments worth $76 million. The biggest deal in the sector was the $45 million invested by European private equity firm 3i in Nimbus Communications, the paper added.

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