Fund raisings and Private equity investments rising in India
The private equity (PE) investments in Indian companies have doubled during January-September 2014. The PE investments in India have shown a 109.1% year-on-year (y-o-y) growth during the period between January and September 2014, touching $4.58 billion.
Among the companies that followed the PE trend, the online firms have been on the top, accounting for more than half of the investments made in the country, with figures reaching about $815 million ( 43 deals), excluding the Flipkart deal. As per the data released by Thomson Reuters, the online companies have been followed by software firms with around $874 billion and financial services companies with about $422.4 million investments.
Private equity investments in India were witnessing a down fall since the last quarter of 2012-13, with figures reaching as low as $577.6 million in 2013. This year even though started with a slow pace, it gathered momentum during the second and third quarters, crossing $1.5 billion during April-June 2014. An interesting point to note here is that the number of companies attracting PE investment has reduced this year compared to the last 2 years, which means the size of the investments alone is hiking.
Some top picks from the India based PE investments this year are Novix Media Technologies which raised $590.6 million and Jasper Infotech which attracted $233.7 million.
The number of PE exits has also been slowed down this year with34.5% y-o-y fall (standing at $185.4) compared to the last 2 years. PE-backed exits in the secondary sale route slowed to 32.3% y-o-y (with $128.5 million) in the initial two quarters of 2014, as per official sources.
Source: The Time of India
