At a time when corporates and private equity firms are either renegotiating on agreed prices for warrant conversion or backing out of such transactions, domestic real estate fund Kotak Realty has converted warrants in Sunteck Realty at the agreed price. With the conversion, Kotak Realty now controls 10% in the real estate firm. “We are bullish on Indian real estate. The fundamentals of many realty companies are still strong. We have converted the warrants at the agreed price,” Kotak Reality Fund CEO S Srinivasan told ET. Kotak Reality converted the warrants at Rs 1,167 per share. On Thursday, Sunteck Realty shares ended down 2.8% at Rs 1,547 on BSE.   more »

At a time when private equity investments in India are slowing down, a study has found that PE-backed companies are more profitable than their non-PE backed peers. The study, conducted by Venture Intelligence, says PE- and venture capital-backed companies are growing significantly faster than non-PE backed companies as well as market indices such as Sensex, Nifty and CNX midcap. While PE and VC funds have invested $32 billion in Indian companies in the last three years, the value addition has been much better. On an average, PE-backed companies grew at 24.9 per cent compared to 15.5 per cent by non-PE backed companies.   more »