PE funds to top $13.5 bn

Private equity (PE) investment in the country are set to touch $13.5 billion this year, making India one of the top seven recipients of such funding in the world, a new study said. It is projected to reach around $20 billion by 2010.

According to a study by research firm Evalueserve, there are more than 366 PE firms operating in the country while another 69 are planning to start operations soon.

"They have amassed $48 billion, which are earmarked for investments in India in the next three and a half years," says the report.

Investments made by private equity firms in India have seen a drastic rise, touching $7.46 billion from 299 deals in 2006. The figures stood at $2.18 billion from 146 deals in 2005. The investments were just $20 million from five deals in 1996.

"If the Indian companies end up receiving $20 billion in such funding, it would represent a thousand-fold increase between 1996 and 2010," the report pointed out.

It must be noted that such investments had come down drastically during 2001-03 due to the dotcom bubble burst.

Meanwhile, the total value of $10 million plus PE deals stood at $4.97 billion (95 deals) in the first half of 2007 while it was just $1.73 billion (65 deals) for the year 2005.

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RICH AND RICHER

PE investments are projected to reach around $20 billion by 2010

According to Evalueserve, there are more than 366 PE firms operating in India and another 69 are planning to start operations soon

The total value of $10 million-plus PE deals stood at $4.97 billion (95 deals) in the first half of 2007