Indian PE investments to hit 2007 peak this year
By siliconindia   |   Monday, 19 July 2010, 21:19 IST   |    1 Comments
Printer Print Email Email
NEW DELHI: Amidst the global economic, private equity (PE) investments in India are expected to gain momentum and hit the previous peak of 2007. Venture capital (VC) and PE fund flows in the country are expected to rebound to $17 billion for the calendar year 2010, reports Paramita Chatterjee of Economic Times. According to a survey by consulting firm Bain & Company, a little less than half has already been invested in the first half of the year and the remaining $8-9 billion is expected to be infused by December. Sri Rajan, partner and head of the PE practice in India at Bain & Company said "action is heating up in the PE space and a host of limited partners from the global market, especially the US, are now looking at India as an investment destination." Key sectors which are likely to witness significant action over the next few months in the country include infrastructure, energy and healthcare, he said. According to the study, limited partners across the globe have projected Asia to provide the best opportunities and India and China offered the best growth profiles. As much as 60 percent of the PE executives and experts who participated in the survey said the average deal size is expected to be in the bracket of $50-200 million in the next 6-12 months, indicating the PE market in India will grow at an annual rate of 10-25 percent during the period. Further, a majority of PE investors said the year-on-year growth could accelerate to 25-50 percent over the next three years. On one hand buyout deals are expected to increase over the next three years and on the other hand deals where PE firms pick 26-51 percent stake is expected to rise to 24 percent by 2013 from the current 17 percent, according to the survey.

siliconindia