Private equity and venture capital firms completed more Indian exits in 2005 than in 2004Private equity and venture capital firms obtained exit routes for their investments in 42 Indian companies, including 17 via IPOs, in 2005. This was a significant increase from the 30 liquidity events, including six IPOs, in 2004, according to data from Venture Intelligence India.
The 17 IPOs in 2005 raised about $950m, compared to the six IPOs raising $225m in 2004.
Arun Natarajan of Venture Intelligence India, said, 'The highly successful IPOs of private equity-backed companies like Suzlon Energy as well as Oracle's buy-out of I-Flex in 2005 proved that the Bharti-Warburg Pincus deal was not a one-off and solidified the India story among international private equity investors.'
K.E.C. Raja Kumar, CEO of Bangalore-based UTI Venture Funds, added, 'While it is encouraging for private equity investors to see the emergence of a healthy climate for liquidity opportunities in India, it is early days as yet. It is crucial for private equity and venture capital firms to demonstrate a successful track record of exits before marquee investors, especially foreign institutions, will consider investments into their future funds.'
The largest private equity-backed IPO during 2005 was that of wind energy turbine maker Suzlon Energy, which raised $342m. Other top private equity-backed IPOs during the year included that of Punj Lloyd, HT Media, YES Bank, Shopper's Stop and PVR Cinemas.
Venture Intelligence India is a division of Chennai, India-based TSJ Media.
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Private Equity News» By Region» Asia» India
Private Equity News» By Region» Asia» India
