VENTURE
CAPTILISTS, DOUBLE INDIA INVESTMENTS TO $443M IN Q3
Money poured in
during the just-concluded third quarter (Q3) of the current
fiscal as big-ticket investments were made by venture capitalists
and private equity firms in Indian companies.
Over $443m was
invested in 30 Indian companies during the quarter, significantly
higher than in the same period last fiscal, when 10 companies
raised about $243m. The previous two quarters - Q1 and Q2
- saw $180m and $94m investments, respectively.
Removal of political
uncertainty and flurry of late-stage deals led to a dramatic
hike in investments compared to the previous quarters, said
TSJ Media, which has compiled the investment data. The company
tracks venture capital and M&A activity.
The December quarter
saw 17 companies raise $10m and above. Investment activity
was spread out across diverse sectors - manufacturing, pharmaceuticals,
engineering and construction services. The significance of
the quarter being the domination of late-stage investments,
where 13 publicly-listed companies were funded.
"With the
uncertainty surrounding the stability of the new government
at the Centre receding, private equity investors resumed their
investments in India with renewed confidence during the October-December
quarter," said Arun Natarajan, editor, TSJ Media.
The biggest deal
of the quarter was $57-m investment made by Hong Kong-based
Asia Debt Management Fund in Chennai-based, publicly listed
cement manufacturer India Cements.
Following this
was the $50m each that Jubilant Organosys and Punj Lloyd raised.
Jubilant Organosys raised capital from CVC International (a
Citigroup unit) and HPC (Mauritius) (a unit of Henderson Investment
Management) in exchange for a 9.7% stake.
Punj Lloyd, the
New Delhi-based engineering construction company, was funded
by Merlion India Fund (a private equity fund jointly owned
by Standard Chartered Bank and Singapore's Temasek Holdings).
The $40-m investment
raised by low-cost airline Air Deccan, from ICICI Ventures
and US-based Capital International, was the third largest
investment during the quarter.
Other big deals include Suzlon Energy, the Pune-based provider
of wind energy turbines raising $22.2m from ChrysCapital.
Mr Natarajan said
that exits have picked up steam, with investors getting out
of 10 companies during the quarter. All exits were through
acquisitions.
Global logistics
firm DHL Express acquired the 68.2% stake held by Schroder
Capital Partners and the founders of publicly listed Indian
logistics firm Blue Dart Express for about $125.8m.
Chinese wireless
internet firm TOM Online acquired around 77% stake in Mumbai-based
mobile entertainment firm Indiagames from Infinity Ventures,
IL&FS Investment Managers and the management team of Indiagames
for about $17m.
Others include,
GW Capital paying $4m to acquire ICICI Venture's stake in
Hyderabad-based retail chain Trinethra Super Retail and chip
design services company Paxonet Communications being acquired
by US-based Conexant Systems for $15m in cash.
Paxonet's investors
included Raza Venture Fund, Crompton Greaves, Inc3 Ventures,
American Express, Alliance Select Investors and Rothschild
Technology Partners.
