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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