Personal Equity Real Estate Investments Down in India
Private equity (PE) India consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that has resulted in a non listing of public equity. Capital for private equity is raised from retail and institutional investors, and can be used to fund new technologies, expand working capital within an owned company, make acquisitions, or to strengthen a balance sheet.
India’s real estate sector has been declined by around 20.2% to $831 million (about Rs 3,740 crore) in the first five months this fiscal due to sluggish demand. PE players had taken over by $1,041 million (nearly Rs 4,685 crore) into realty in the same period last fiscal.
The CEO of Fire Capital, Om Chuadhry reported saying, “Funding through PE route is lower compared to last year, as fund houses are cautious about investing in realty due to a dip in general demand and uncertainty over timely completion of projects”.
PE delays in project execution have prompted fund houses to adopt a cautious approach toward the real estate sector, according to data compiled by research firm Venture Intelligence. The size of the private equity market has grown steadily since the 1970s. Private equity firms will sometimes pool funds together to take very large public companies to private.
The Times of India.
Capital investment, Fund houses, Private companies, Private equity firms, Public companies, Public equity, Realty News, Technologies, Working capital
