Around one-third of global private equity investments were made in technology companies in the calendar year 2003.
The technology sector, which was among the first to see signs of recovery, drew over $42 billion, according to PricewaterhouseCooper's report on global private equity investment released last week.
Global investment in private equity and venture capital rose for the first time in two years by 43 per cent to over $ 155 billion in 2003.
Mirroring the international scene, India's telecom and information technology sectors also saw healthy interest, which said PricewaterhouseCoopers director Deepak Kapoor is expected to see yet another round of investments during 2004.
ICICI Ventures picked up 50 per cent stake in Tata Infomedia for $22. 4 million, among other large-sized deals. CDC Capital Partners acquired 23.49 per cent stake in Punjab Tractors Ltd for $48.53 million.
"The pharmaceuticals sector equally saw a number of deals take place -- in particular, Matrix Labs, Aurobindo Pharma, Max India, and Lupin. Newbridge Capital and Temasek Holdings acquired a combined 27.83 per cent stake in Matrix Laboratories for $ 135 million. Aurobindo Pharma raised $56.37 million from investors including Merlion Funds (a Standard Chartered Private Equity and Temasek Holdings joint venture) and Citigroup," said Kapoor.
India attracted about $774 million in private equity investment in calendar year 2003. This reflects a rise of 31.1 per cent over last year's investment inflows of $590 million.
Many foreign and domestic private investors who invested in the second half of 2003 -- well ahead of the rapid rise in the stock market -- have made handsome gains from their investments.
So what's in store for the Indian investment scene in 2004? According to PwC, the Indian banking scene is on top of the charts of the private equity investors and has been for some time now.
"With India looked upon as a favourable auto outsourcing destination, the auto components industry is also likely to attract private equity investment in the current year," said Kapoor.
