Private equity and venture capital firms invested a whopping $7,974 million in about 325 deals in India during 2010 calender year, according to data released by by PE/VC research firm Venture Intelligence. PE investments in 2010 almost double to $7.9 billion compared with $4,068 million across 290 deals in 2009. This data excludes deals in real estate.
PE/VC exits were the most interesting sectoral trend in 2010 with 121 transactions, including 24 via IPOs. PE-backed companies raised about $2.20 billion via IPOs, while 2009 witnessed just 66 liquidity events, including seven via IPOs. The largest IPO by a PE-backed firm in the year was the $359 million SKS Microfinance IPO. Among exits via strategic sales, ChrysCapital’s reported $400 million sale of its holdings in Infosys Technologies (in which it had invested about $175 million in May 2008) was among the most significant exits via public market sales
Actis and Sequoia Capital India exited OTC drug firm Paras Pharmaceuticals via sale to UK-based Reckitt Benckiser for $726 million. Actis had held a 63% stake in Paras. In another significant exit via M&A, ICICI Venture sold specialty chemicals maker RFCL, formerly Ranbaxy Fine Chemicals, to US-based chemicals firm Avantor Performance Materials. In the largest exit via secondary sale (sale by one PE investor to another) during 2010, ICICI Venture sold its stake in diagnostic services chain Metropolis Healthcare to Warburg Pincus in an $85 million deal.
The report further highlights the top investments for 2010. The largest investment was of $425 million raised by power generation firm Asian Genco from investors that included General Atlantic, Goldman Sachs, Morgan Stanley, Everstone and Norwest. Next in line was infrastructure fund SBI-Macquarie’s $304 million commitment to independent telecom tower infrastructure firm Viom Networks.
The third spot was shared by two $300 million investments – one by Blackstone into an unlisted renewable power generation firm of the Moser Baer Group and another by Quadrangle Capital Partners into telecom towers firm Towervision India. The fourth position was bagged by GVK Energy, a wholly owned subsidiary of Hyderabad-based listed firm GVK Power & Infrastructure, receiving commitments for about $422 million from the infrastructure arms of two UK-based PE investors — Actis and 3i.
The energy sector was the biggest draw with 34 investments worth about $2,141 million, while IT & ITeS with 79 investments worth $696 million topped in terms of volume. Banking, financial services and insurance (BFSI) with 44 investments worth $1,054 million stood second on both counts. With 25 investments during 2010, IFC, the World Bank’s private investment arm, was the most active PE investor in India during 2010. IFC was especially active in energy and BFSI. Sequoia Capital India with 15 investments.
Source: Financial Express