Venture capital, PE deals to touch $17.5 Bn by 2009

By SiliconIndia   |   Wednesday, 24 October 2007, 07:00 Hrs
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Venture capitalists and private equity players will bag deals worth $17.5 billion by 2009, says BusinessLine research bureau. This is a three-fold jump from $5.5 billion at the end of the first half in 2007, predicts a new study from market research firm Evalueserve.

Consequently, the total number of deals would soar to 560 as private equity players put in funds into the new engines of growth that drive the Indian economy.

The study mentions that 173 deals have been struck by the end of the first half of 2007. Evalueserve forecasts that beyond the technology-sector focused activity that has driven PE investments in the past, private equity and venture capital firms are now aggressively looking to invest in new areas such as manufacturing, financial services, healthcare, real estate, and construction.

Currently, there are more than 366 private equity/venture capital firms operating in the country. The white paper titled 'An Indispensable Guide to Equity Investment in India' further states that private equity funding could swell to $20 billion by 2010 as India may house another 69 such firms.

In total, these private equity firms will amass $48 billion earmarked for investment in India between July 2007 and December 2010. "Several firms that we talked to mentioned they would be willing to invest even more if they saw good investment opportunities. This stands in stark contrast to 1996, when Indian companies only received a total of $20 million," said the author of the white paper, Dr Alok Aggarwal, Chairman and Founder of Evalueserve.

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