Changing role and impact of private

5
equity investment in India

written by:- Presented by:-

Dr Smita Shukla Rishi Chauhan
Dr. Anil Kothari Ro. no-127
 Introduction
Globalization 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 dependent
sleepy 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
 Private equity
The term private equity stand for investment in the
primary 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 in
the 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.
 History of private equity dia
I n
investment in India in
nt
me
s t
v e
in
i ty
q u
e e
a t
ir v
p
Total number and Value of private equity &
venture capital deals in india
year Number of Value of investment in
deals ($ 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
Analysis of private equity investment n t
m e
s t
ve
in
it y
q u
e e
at
ri v
f p
s o
s i
al y
A n
Private equity investment by industry
industry 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 & 33 29 33 16 535 478 491 269
life science

energy 28 25 6 -- 1693 1101 252 --

Media and 22 19 9 7 578 616 397 102
entertain.
Shipping 13 20 11 -- 509 685 220 --
&logistics
telecom 10 13 4 -- 1468 1839 1344 --
Others 68 49 43 37 1787 1284 652 632
Winner in India
 2008 2007 2006 2005
No. de $mill No.de $mill No.de $mill 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

 Top private equity deals in 2008
USD
company sector million investors

Aditya Birla telecom Mobile services 640 Providence

Ltd.

India bulls power Power 395 Farallon capital

Cairn India Oil and gas 278 Orient global

 conclusion

conclusion
Rishi
Rishi Chauhan
Chauhan
THANK
THANK YOUYOU