October 2008
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PE firms prefer to play safe in Indian markets

One of the largest global private equity (PE) fund was close to finalising a deal with a north-based company. However, following the changes in the global economic environment, the fund’s US-headquarters instructed the Indian arm to go slow over the deal citing concerns over the falling valuations. There are many such instances where deals are taking a longer time to close or at times PE firms are going back on their commitments. Compared to the first nine months of last year, this year has seen a dip in the number of transactions as well as the ticket size. Private equity firms have begun to cherry pick on deals and are becoming cautious in their investment strategy, unlike in the past where there was too much money chasing such deals. […]

Private equity firm buys 5.2 percent stake in Mastek

Software firm Mastek Ltd said on Monday, Nalanda India Fund Ltd has acquired 5.2 percent stake in the company through market purchases, to take its shareholding to 9.99 percent. Nalanda India Fund, floated by private equity firm Nalanda Capital, has a corpus of $400 million, its website said. Shares in Mastek were up more than 3 percent at 220.10 rupees in a weak Mumbai market.(Reuters) […]