Quantum Jump in Indian Equity Investment

Private equity investments in India have surged by 100% during
January to March 2007. As against $1.7 billion in the 1st quarter
of 2006, the figure stands at $2.5 billion as on 31st March ,
2007. Private equity investments totaled $7.6 billion during
2006, and industry leaders are hopeful of doubling the figure
in 2007.

In the realm of venture capital, the performance during
the 1st quarter of 2007 is again better than the corresponding
dates for 2006, with an improvement of $5 million.
Indian equities have performed better over last year on two counts – the
number of deals and the average size of the deals.

As many as
90 deals have been made in the 1st quarter of 2007, with 7 of
these crossing the $100 million bar. During 2006, only one of
the 75 deals, the Temasek investment in Tata Tele Services was
significant enough.

However, the profile of investors in 2007
is similar to 2006, with IT and ITES drawing the most from venture
capitalists and private equity.

Manufacturing, financial services,
media and engineering and construction have also attracted a
fair degree of investment in India
The burgeoning volumes in private equity investment in India
have come largely from Goldman Sachs, General Atlantic, Morgan
Stanley, Citigroup, Actis, Khazanah Nasional Berhad, 3i Group,
Oman International Fund, ADM, INX, and Kotak Mahindra Bank.

Industry
leaders are optimistic of more action during the second half
of the year.