Tuesday, December 12, 2006

India finance: Private-equity, venture-capital deals rise



      Private-equity and venture-capital firms invested about US$2.3bn in 147 deals in India in 2005, compared with US$1.6bn in 68 deals in 2004, according to Venture Intelligence India, which provides data on private- equity, venture-capital and merger-and-acquisition deals in India and Indian-founded companies worldwide. Late-stage and publicly listed companies accounted for more than 60% of private-equity investments in 2005. The study said a majority of the investment went into the information technology (IT) and IT-enabled services sector, with 44 deals valued at US$474m. This was followed by the manufacturing industry (excluding textiles and automobile), with 26 deals valued at US$366m.

The research said southern India attracted 41% of all private-equity investments last year (in value terms), while western India clinched 40%. Southern India, particularly Bangalore in Karnataka state, is home to much of India's IT industry; western India to much of manufacturing.

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