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As the tides of investments change over time, venture capital (VC) funds are shifting their focus to businesses related to consumer demand such as education, media and entertainment, food & beverages and alternative energy. This focus assumes significance as it was till six months ago that technology was the prime investment target of VC funds. Recently, Matrix Partners India invested $7 million in pre-school educator Tree House Education and Accessories and Helion Venture Partners invested $4 million in Humming Bird Suites, a Bangalore-based service apartment operator.VC funds are raising more funds and entering into newer deals. Despite the slowdown in the economy, the industry has made 20-25 investments in each quarter. […]
Ports in India, a country with a coastline of around 7,600km, have attracted private equity, or PE, capital for some years. Now, the number of such deals is increasing and PE firms are moving beyond ports and shipyards when it comes to investing in marine infrastructure. With India’s cargo-handling capacity at ports expected to double to 1,500 million tonnes by 2011-12, PE experts say a network of strong ancillary businesses are required to promote trade and transportation activities as both ports and shipyards need accessibility and linkages to the main land. “We need to view marine infrastructure in a holistic manner. It requires a complete ecosystem around itself,” says Aashish Kalra, co-founder and managing director, Trikona Capital Ltd, a real estate investment company. “We are not only interested in marine infrastructure but also the real estate around it.” Trikona has invested in Pipavav Shipyard Ltd, which is expected to be the largest shipyard in India and among the largest in Asia. […]
Arthanomics, the Annual finance Seminar of the Indian Institute of Management, Kozhikode was held on the 6th and 7th of September, 2008 at the institute’s scenic campus in Kozhikode (Calicut), Kerala. The theme of this year’s seminar was “Mergers and Acquisitions – India Inc. on the prowl”. As has been the case with earlier editions of the seminar, Arthanomics ’08 too had an impressive line up of distinguished personalities which included the likes of Mr. Kamlesh Gandhi, Head of the Investment banking division of Religare, Mr. Manoj Gupta, Vice President at Nexus Capital Advisors, and Mr. Sadashiv Rao, Senior Director at IDFC. Each speaker shed valuable insights into the Private Equity scenario in India linking them with current economic conditions. While challenges faced by the Private Equity industry were recognized, a consensus emerged regarding the enormous growth potential in India for Private Equity firms. […]
The Securities & Exchange Board of India (Sebi) has proposed to increase the shareholding limit for strategic invesors in stock exchange to 15% from the present 5%. Certain categories of investors such as other stock exchanges, depositories, clearing corporations, banks and insurers can now raise their holdings in Indian stock exchanges. The 5% limit will, however, continue to apply for other investors like individuals and companies. As reported by FE earlier, the regulator had been receiving requests from certain quarters that the present limit of 5% is acting as a deterrent for attracting long term anchor, or strategic, investors in stock exchanges. And that it had begun exploring the idea for increasing the stake. […]
Arthanomics, the annual finance seminar of the Indian Institute of Management Kozhikode will be held on the 6th and 7th of Septemper, 2008 at the institute’s scenic campus in Kozhikode (Calicut), Kerala. The theme of this year’s seminar is “Mergers and Acquisitions – India Inc. on the prowl”. Mergers and Acquisitions have emerged as a natural process of business restructuring throughout the world. India Inc. too has emerged as an active player in this dynamic scenario. It is in this context that the theme of this year’s seminar is focused on Mergers and Acquisitions. The purpose of the seminar is too look beyond the hype associated with M & A activity, and raise issues and obstacles that Indian companies have to be aware of in these turbulent times. In addition, the summit would also focus on Indian Private Equity and how it is capitalizing on the booming Indian Economy as well as on the changes and dynamics in the Banking and Insurance sector in the Indian context. For more information, please […]
Emerging Indian companies, which are on the growth mode, need not necessarily be wary of the rise in interest rates to fund their expansion plans. The private equity (PE) brigade is waiting with pretty deep pockets and is expected to add further weight during the second half of the current calendar year. According to PE industry experts, India-focused funds are expected to raise close to $5 billion in the six months from June to December, more than double in the same period last year. What’s more interesting is that these funds are able to raise amounts ranging from $700 to $1 billion hardly within three months. IDFC Private Equity, for example, raised its third fund of $700 million in just a month’s time. Sequoia India Capital, in late August, closed its growth equity fund at $725 million taking its total corpus to $1.8 billion. […]
With rapid rise in internet penetration in urban India, which has grown from 9% last year to to over 12%, the number of netizens in the country has inched upto a sizeable 49-million. While this figure has made marketers look at internet as a viable advertising platform, venture capitalists have already started supportingh the new media growth story. According to industry estimates, around Rs 400 crore has been pumped in by various private equity/venture capital firms like IDG Ventures, Sequoia Capital India, Opus Capital and Intel Capital in online advertising sector this year. Pegged at over Rs 270 crore, the Indian online advertising is expected to touch Rs 2,500 crore in the next three years, accounting for 6.8% of the entire advertising pie. Currently, internet ad spend in India accounts for only 2.4% of the total ad market. […]
The movie industry dubbed them as flops. But films like Fiza, Yaadein and Ram Gopal Verma ki Aag delivered profits. Films like Om Shanti Om (OSO) and Namaste London delivered over 100 per cent returns while still under production. It is success stories like these are driving the new script being written for Bollywood. Private equity funds are now preparing to make use of this opportunity too. ICICI is backing a Cinema Capital Venture Fund (CCVF), the first of its kind, which is looking to raise Rs 500 crore from high net worth investors. As rapidly changing consumption patterns for entertainment and digital technology change the contours of the entertainment business, big funds are now getting ready to make their presence felt in the business. […]
The hanging uncertainty in the capital markets and the ensuing fall in company valuations have triggered an influx of private equity (PE) funds. But a likely overcrowding could stretch valuations, experts say. The 30% fall in stock markets, from January, has led to a greater appetite for PE funds, but many deals were stuck over high valuations. Now, with promoters seeing a prolonged stability in the market at the current levels, and with no immediate upswings in sight, the time is again ripe for PE. The BSE Sensex, which had touched 21,000 in early January, is now languishing over the 14,000-mark. “Valuations have cooled off in the deal space, leading to the entry of new PE players into the segment,” says Deepesh Garg, a director with O3 Capital, an investment banking and financial services firm. […]
Lack of clarity over foreign venture capital investments (FVCIs) in India has led to 83 applications from foreign venture capital firms piling up with the Reserve Bank of India for approval. Of these, about 28 venture funds (non-real estate funds) which have sought approval have committed close to $10 billion to India, according to lawyers involved with the registration process. Most of these foreign private equity firms have given an undertaking that they would not invest in the real estate sector or in related activities. According to sources close to the development, policymakers and financial sector regulators are working towards harmonising the regulations related to foreign venture capital investment, foreign direct investment and domestic venture capital investment. “RBI is looking into a broad-based policy issue with regard to the foreign venture capital investments in the country,” […]
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