New Delhi: Global private equity firms, including Blackstone and Carlyle Group, have invested $3.8 billion in 2007 so far in the country, up 50% from the year-ago period.
The record volume has been reached through 81 M&A deals. Last year, foreign private equity players had invested $2.6 billion, data complied by global consulting firm Dealogic showed.
Carlyle Group is the leading “financial sponsor” in India with investment of $777 million via two deals, including acquisition of over 6% stake in HDFC.
It is followed by Dubai International Capital, which bought 2.87% in ICICI Bank for $741 million, and Blackstone Group with $619 million inflow in eight deals.
Financial sponsor is a term commonly used to refer to private equity investment firms, particularly those engaged in leveraged buyout transactions.
Blackstone Group, the world’s leading private equity firm, has acquired stake in companies such as Intelenet Global Services, Punj Lloyd and Gokaldas Exports.
The US-based Group has also decided to pump in $150 million to acquire a stake in Nagarjuna Construction Company. A move that comes close on the heels of its decision to acquire up to 70.1% in Gokaldas Exports, the country’s biggest apparel exporter, for about Rs675 crore.
Blackstone Group manages $90 billion of assets worldwide. In January, it invested $275 million in Ushodaya Enterprises Ltd (UEL), a media and film production company owned by Ramoji Rao.
Buyouts by private equity players accounted for 8% of total M&A activity in India during the year so far, down four per cent from the year-ago period.
This activity accounts for 16% of total Asia Pacific Financial Sponsor M&A buyout volume in 2007 year to date, up 4% over the year ago period.
Besides, the average deal size has risen 54% to $60 million this year and the volume accounts for 16% of total Asia Pacific Financial Sponsor M&A buyout volume in 2007 so far, the Dealogic data showed.
Finance, the biggest recipient of private equity in India, has attracted $two billion via 11 deals this year, followed by construction with $418 million through nine deals and textiles with $309 million in seven deals.