India Gets $3.2 Billion In Private Equity Investment In Apr-June

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.

The information technology and backoffice outsourcing industry–a long-time favorite among private equity investors–attracted $550 million in 25 deals in the last quarter.

“It was surprising to note how the manufacturing (sector), which has consistently been the second favorite destination for private equity investments over the last several quarters, didn't even figure among the top five industries during the latest quarter,” Arun Natarajan, chief executive of Venture Intelligence, said in the statement.

“The next few quarters will show whether private equity interest in manufacturing is actually waning or whether this is a one-off trend,” he said.

The statement didn't disclose the investment flow to the manufacturing sector.

Industries including healthcare and life sciences, engineering, shipping and logistics also drew significant investments from private equity players, the statement said.

Source : CNN