Private equity (PE) firms invested $7.97 billion in Indian companies in 2010, almost double than the previous year, says a study.
According to data compiled by deal space research firm VCCEdge, PE firms invested $7.97 billion in India in 2010, as against $4.06 billion during the previous year.
As many as 325 companies saw PE investment pouring in, while firms made an exit from 121 other companies.
“The really exciting feature was the exits, where activity vaulted to an all-time high with 121 transactions, including 24 via initial public offerings (IPOs),” he added.
In terms of investment, energy, banking, financial services, insurance and telecom were the most targeted sectors, VCCEdge said.
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The largest deal of the year was the $425-million investment in power generation firm Asian Genco by a consortium of General Atlantic, Goldman Sachs, Morgan Stanley, Everstone and Norwest. This was followed by SBI-Macquarie’s $304 million commitment to telecom tower infrastructure firm Viom Networks (formerly Quippo Telecom).
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. A $267 million investment by UK-based 3i and others in GVK Energy also figures among the top five.
Among cities, Mumbai-based companies retained the top slot, attracting 68 PE investments worth $1.59 billion, followed by Delhi, with 60 investments valued $1.02 billion. Bangalore-based companies came third, attracting $1.02 billion across 53 deals.
With 34 investments worth $2.14 billion, energy companies topped in terms of investment value, while Information Technology and IT-Enabled Services topped in terms of volume with 79 investments worth $696 million. Banking, financial services and insurance (BFSI) came second on both parameters, with 44 investments worth $1.05 billion. Figures excluded PE investments in real estate.
As for the exits, the number stood at 121, including 24 via IPOs. In 2009, there were 66 exits, including seven via IPOs.