Private Equity Investment
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Transcript of Private Equity Investment
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5
Changing role and impact of private
equity investment in India
Presented by:-
Rishi Chauhan
Ro. no-127
written by:-
Dr Smita Shukla
Dr. Anil Kothari
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IntroductionGlobalization has transformed India. Today
multinational automakers compete on indian roads
.western style shopping malls compete with with
multiplexes are common site in metros .call centers
are restructing in Bangalore, Gurgaon ,Noida , and
Pune .Indian software companies are spread across
the globe. Indian financial system has undergone
complete transformation. The Indian financial market
has moved from being a public sector dependentsleepy system to a dynamic system plugged to global
financial markets. Global private equity funds, which
are today actively operating in India, are one of such
forces
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Private equity
The term private equity stand for investment in theprimary equity of a company , the equity that is not
freely tradable on a public stock market .Such an
investment is outcome of negotiation between the
company and fund .such an investment is primarily inthe unlisted companies .The companies directly receive
the money on account of private equity investment. A
private equity company can also provide support to the
target company at various stage of its growth.
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History of private equity
investment in India
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Total number and Value of private equity &
venture capital deals in india
year Number of deals
Value of investment in($ million )
2000 280 1160
2001 110 937
2002 78 591
2003 56 470
2004 71 1650
2005 146 2200
2006 299 7500
2007 387 14200
2008 399 10790
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Analysis of private equity investment
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Private equity investment by industryindustry numbers of deals Value of deals ( USD Million)
2008 2007 2006 2005 2008 2007 2006 2005
IT and ITES 107 91 83 43 1567 988 1492 412
manufacturing 49 61 57 27 1014 1638 930 371
BFSI 45 50 27 11 1101 3979 727 306
Eng & const. 24 30 25 5 538 1628 651 92
Healthcare &
life science
33 29 33 16 535 478 491 269
energy 28 25 6 -- 1693 1101 252 --
Media and
entertain.
22 19 9 7 578 616 397 102
Shipping
&logistics
13 20 11 -- 509 685 220 --
telecom 10 13 4 -- 1468 1839 1344 --
Others 68 49 43 37 1787 1284 652 632
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Winner in India
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2008
No. de $mill
2007
No.de $mill
2006
No.de $mill
2005
No.de $mill
Mumbai 105 3229 109 5995 69 1780 38 697
Delhi/ NCR 74 3015 63 2688 41 395 25 321
Bangalore 64 1333 49 685 40 1525 19 195
Hyderabad 35 731 41 1380 17 492 14 168
Chennai 35 902 32 824 22 354 16 328
Ahmadabad -- -- 14 492 -- -- -- --
Kolkata -- -- 12 339 -- -- -- --
Pune 13 281 -- -- 10 1114 9 91
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Top private equity deals in 2008
companysector
USD
million investors
Aditya Birla telecom
Ltd.
Mobile services 640 Providence
India bulls power Power 395 Farallon capital
Cairn India Oil and gas 278 Orient global
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conclusion
conclusion
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Rishi ChauhanTHANK YOURishi ChauhanTHANK YOU