Pvt equity investments touch $327 million

Private Equity firms have invested over $327 million in 30 Indian companies during the quarter ended March 2005.

According to TSJ Media, a firm that tracks venture capital activity in India, the amount invested in the latest quarter was higher compared to what was invested during the same period last year -during which 12 companies had raised about $300 million.

However, the amount invested in the latest quarter was lower compared to the October-December 2004 quarter, which had witnessed 31 investments totalling about $450 million.

The January-March 2005 quarter witnessed nine companies raising investments of $10 million or more.

"While Information Technology companies topped in terms of number of deals, the textiles sector cornered the most money during the quarter," said TSJ Media editor, Arun Natarajan, in a release.

The IT sector witnessed five companies - including IT services firms Caritor and KPIT Cummins Infosystems and financial software products firm Financial Technologies "� raising about $66 million. Investments in the IT Enabled Services (ITES) and the Business Process Outsourcing (BPO) sector, which attracted the maximum number of investments in the last two years, were conspicuous by their absence in the latest quarter.

The textiles and garments sector saw two companies "� Sintex Industries and Welspun India - raising $73 million. The hotel industry witnessed three firms raising a total of about $60 million.

The banking and financial Services sector attracted two investments "� in Shriram Transport and Indiabulls Credit Services - worth about $42 million. Four life sciences firms notched up $23 million for the sector.

Private equity firms were also attracted to the automobile industry and invested $15 million to acquire stakes in companies like CG Igarshi Motors, AVTEC and Swaraj Mazda.

Late stage investments continued to dominate with as many as 19 Private Investment in Public Enterprise (PIPE) deals during the quarter. "In addition to this, subsidiaries of listed companies "� like Max HealthStaff and Indiabulls Credit Services "� nibbled away at the amounts leftover for private companies," said Natarajan.

The $7.5 million second round investment raised by Bangalore-based biotechnology firm Avestha Gengraine Technologies stood out like a beacon as the sole early-stage investment reported during the quarter.

In another deal, Arch Pharmalabs, a Mumbai-based maker of active pharmaceutical ingredients, raised a $4.44 million third round from IL&FS Ventures.