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PE exits halve in FY09 as stock valuations dip

The number of investment exits, or selloffs, by private equity (PE) firms has more than halved to 21 transactions in the year ended March 31, 2009, against the previous year, according data compiled by Venture Intelligence, a firm that tracks PE and venture capital investments in India. In terms of value, PE firms encashed $976 million through mergers and acquisitions (M&A) in 2008-09 as against $1.63 billion, for 50 deals, in the previous fiscal. PE firms, which invest in a company looking for capital appreciation, exit through various routes, including a trade sale to a strategic acquirer, public listing, recapitalisation and secondary sale to other PE investors. Trade sale is the most common exit route for PE firms. […]

PE`s appetite for educational cos rises

With an estimated US$40bn market for private institutions and a CAGR of 8.6%, it is no surprise that PE & VC investors are looking to ramp up the 30 investments (worth over US$300mn) they have already made in Education-related companies, the Venture Intelligence report indicates. Over 80% of Private Equity and Venture Capital investors surveyed by Venture Intelligence in its newly released “Private Equity Pulse – Education” report, plan to make an investment in Education companies during the next 6-8 months. […]

IFCI, UTI & IDFC buy 16.62% each in Sabarmati Gas

IFCI Venture Capital Fund, UTI and IDFC Project Equity Co are set to pick up 16.62% stake each in Sabarmati Gas (SGL), a Gujarat-based city gas distribution firm jointly promoted by Bharat Petroleum Corp (BPCL) and Gujarat State Petroleum Corp (GSPC). “SGL board has approved allotment of 49.86% stake to the three investors at Rs 80 per share including Rs 70 per share as premium,” said a BPCL official, who didn’t wish to be named. The total value of the deal is estimated at Rs 80 crore. Post the deal, the two promoters, GSPC and BPCL, will hold 25% stake each in the company, the rest 0.126% to be held by 12 individuals. […]