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The temporary overheating of the Indian markets has led private equity (PE) investors opt for the cooler environs of south-east Asia. “The valuation of Indian companies is very high. But since this is a temporary phase, we are looking at SE Asian markets instead for tactical reasons. In India, we see a lot of capital chasing limited numbers of deals, but we get better deals outside India,” said Electra Partners’ Hong Kong-based head of Asian markets John Levack. Mr Levack is the UK-based private equity company’s representative on the board of directors of Zensar Technologies. He was speaking to reporters on the sidelines of the IT company’s AGM. […]
Private equity (PE) is pouring into India. PE investment worth $5.7 billion has already come in the first half of calendar 2007, which amounts to three-fourth of total inflows in last year. In 2006, the country witnessed PE investment of $7.5 billion. If that's not enough, PE flows jumped nearly 70% in the second quarter April-June this year to about $3.2 billion, across 76 companies, as against 67 deals totalling $1.9 billion in corresponding April-June period in 2006. In the first quarter this year (January-March), PE investments were pegged at $2.5 billion. As regards venture capital, firms invested about $112 million across 19 deals during the second quarter of 2007, as against nearly $40 million during April-June previous year. […]
Private equity firms invested around $3.2 billion in 76 Indian companies during April-June, Venture Intelligence, which tracks private equity investment in India, said Tuesday. The amount invested during the second quarter was up 68.4% from the same period last year when India drew $1.9 billion in 67 deals, Venture Intelligence said in a statement. Carlyle Group and Citigroup's joint investment of $700 million in Housing Development Finance Corp. was the largest deal reported in the just-ended quarter, followed by a $500 million investment by U.S. Avenue Capital Group in SKIL Infrastructure, the statement said. […]
Indian companies have already seen a considerable number of mergers and acquisitions in 2007. Here are some highlights from the latest study on the mergers and acquisitions in India in the first half of this year. According to the Grant Thornton half-yearly tracker, one of India's traditional sector, textiles, has started seeing several outbound cross border deals. Some of the larger acquisitions in this segment have been made by companies such as Spentex Industries, Himatsingka Seide, and GHCL. The first half of 2007 has been another milestone in the M&A and private equity space in India. Both M&A and private equities have touched unprecedented deal values. […]
The total value of PE deals has exceeded that of mergers and acquisitions (M&As) in the month of June, according to global accountancy firm Grant Thornton’s Dealtracker report. The value of PE deals during the month went up by $0.25 billion to $1.81 billion from $1.56 billion in May 2007, that of M&A deals decreased by $2.65 billion to $1.72 billion from $4.37 billion in May 2007. There were 36 PE deals and 63 M&A deals during the period. The significant deals in the PE space included Avenue Capital group’s 26 per cent stake buy in SKIL Infrastructure for $500 million, Goldman Sachs $300 million investment in Century Group and BNP Paribas’s $180 million investment in SREI Infrastructure Finance for a 50 per cent stake. […]
Next month, 18-odd private equity (PE) professionals who make up Washington DC-headquartered Carlyle Group LLC’s Asia investment team will troop down to Kumarakom in Kerala for the firm’s annual brainstorming meet. This is the first time India will play host to the event and it underscores the importance the PE firm, which has $58.5 billion (Rs2.36 trillion) under management, attached to this market. India is one of the firm’s key markets for investments from its $680 million Asia Growth Partners III fund, which has done two deals since its launch in 2005—Claris Lifesciences Ltd and Elitecore Technologies Ltd, both based in Ahmedabad. The Asia growth fund invests primarily in four markets—China, India, Korea and Japan. […]
The mainland has suffered a spectacular collapse in the value of private equity deals, according to figures released for the first half of the year by Thomson Financial. The total value of deals made by buyout companies to June 30 was US$678.9 million, a decline of more than 83 per cent from the US$4.2 billion for the same period last year. The mainland's share of deals in Asia-Pacific, excluding Japan, fell from 33 per cent to just 3 per cent, placing it well behind India, Taiwan Province and Singapore. The mainland's disappointing performance is set to reignite concerns about protectionism in Asia's second-biggest economy. The Chinese government has announced plans to make foreign investors buying companies go through national security checks, while Carlyle Group's failure to take a controlling stake in State-owned Xugong Group Construction Machinery last year raised fears of an anti-foreigner backlash. […]
The private equity (PE) juggernaut, which has been scorching the global deal street, has come of age in India. For the first time, the value of PE deals in a single month has overtaken that of strategic merger & acquisitions (M&A). June reported $1.8 billion worth of PE deals in the country — the highest in a single month — overtaking strategic M&A deals at $1.72 billion. As per the latest dealtracker by advisory firm Grant Thornton, there were 36 PE deals during June totalling $1.81 billion as against 24 deals worth $1.56 billion during May.Says Grant Thornton partner-corporate advisory services CG Srividya, “One of the reasons for this is the increasing number of buyouts and PE interest in the real estate and infrastructure sectors. Our estimates show that close to $1 billion worth of PE money went to the real estate and infrastructure sectors in June alone.” […]
With global investors buying into the India growth story, the size of private equity deals in the country has doubled in the last two years. While the average private equity deal size was $15-16 million in 2005, it jumped to $25 million in 2006 and $30.8 million in the first six months of 2007, according to data from research outfit Evalueserve and professional services firm Ernst & Young. Experts say this is because of a larger number of players entering the Indian market. There are 461 funds operating in India now, against less than a hundred two years ago. […]
The elephant has pipped the dragon on the private equity (PE) turf for the first time. The country bested China in private equity investments for the first six months of 2007, and currently ranks second on the Asian (including Japan) PE investments chart. PEs continued to buy the India story while a few Asian favourities like South Korea saw setbacks. According to Centre for Asia Private Equity Research data, India has seen $3.7 billion in PE investments during January-June, 2007. This puts it just behind Japan, which drew PE funds worth $4.91 billion, but ahead of China’s (including Hong Kong) $2.6 billion in the same period. “For the first half (H1) of 2007, Australia has dropped from last year’s first position to sixth this year, with Japan being number one, followed by India and People’s Republic of China,” says Centre for Asia Private Equity Research MD Kathleen Ng. […]
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