Private equity investments in India doubled in the January-March quarter as global firms like Goldman Sachs and 3i poured money into fast growing Indian companies.
Private equity firms invested $2.5 billion in the first quarter of 2007, up from $1.27 billion a year earlier, data released by Venture Intelligence on Monday showed.
The number of deals rose to 90, from 76 in the year earlier, indicating there has been an increase in the size of deals.
“There were a couple of deals like Goldman buying stake in the National Stock Exchange (NSE) and 3i's investment in Nimbus Communications which boosted the numbers,” said Arun Natarajan, chief executive at Venture Intelligence.
Private funds of Goldman, Morgan Stanley, Citigroup and General Atlantic bought stakes in NSE for about $525 million in the first quarter.
Manufacturing firms got the maximum investments at $390 million in 15 deals during the quarter, followed by software services at $320 million in more than 20 deals, data showed.
Private equity investment in India is expected to touch about $10 billion in 2007, from $7.46 billion in 2006 which was more than triple of $2.26 invested in 2005.
Source : NDTV Profit