Private equity firms invested about USD2,047m across 88 deals in India during the quarter ended September 2010, according to a study by Venture Intelligence.
The latest numbers take the total PE investments in 2010 to USD6,566m (across 231 deals) more than twice the USD2,502m invested (across 179 deals) during the same period in 2009.
The amount invested in Q3 was little over twice that during the same period last year, which witnessed USD976m being invested across 65 deals, but lower compared to the immediate previous quarter USD2,364m across 71 deals.
“For the first time since Q1’09, the amount invested by PE firms has dipped when compared to the immediate previous quarter,” says Arun Natarajan, managing director and chief executive of Venture Intelligence. “Given the rapidly rising public markets and strong prospects for IPOs, this is probably a better time for PE investors to focus on exits rather than place big investment bets.”
The largest investment during Q3 was SBI-Macquarie’s USD304m investment into Viom Networks. Other top investments reported included Blackstone’s USD300m investment into Moser Baer Projects followed by Actis’ USD100m investment in IDFC.
The IT and ITES industry registered 24 deals worth USD126m during Q3, followed by BSFI (13 deals worth USD312m) and energy (nine deals worth USD522m). Venture capital and late stage investments accounted for 31 and 28 deals each during Q3. Late stage deals accounted for 56 per cent of the investments in value terms.
Private equity firms obtained exit routes for their investments in 27 Indian companies during Q3, including two via IPOs (that of Gujarat Pipavav Port and MakeMytrip.com). This compares to 23 exits (including two IPOs) in the same period in 2009 as well as in the immediate previous quarter (including five IPOs).
The largest exits via M&A in Q3 included JP Morgan, IDFC PE’s exit from L&T-IDPL (via buyback by L&T) and Kubera Partners’ sale of its stake in Venture Infotek (to European IT Services firm Atos Origin). The largest exit via public market sale was ChrysCapital’s exit of its stake in Bajaj Auto Finance.