The private equity sector in the country experienced a flurry of activity after March this year, following expectations of a stable industry and a rally in stock prices.
While a number of players invested more in Indian companies, another set exited the market, making profits after March.
The companies that invested included Saif Partners, which made a $24 million investment in Network18, and Times Private Treaties, which acquired 12 per cent in Jiny & Jony (for an undisclosed sum), according to data with analysts and brokerage firms.
Companies like Avantha Infrastructure & Power, Global Green (Avantha Group) and JSW Steel were among those in talks with PE investors. An merchant banker, on condition of anonymity, said many others players were in discussions and at least a couple of deals would be announced soon.
On another hand, as many as seven PE funds -- including ChrysCapital, Citi Venture Capital International, Sequoia Capital India, 2i Capital, IL&FS Investment Managers and the 3i Group -- exited Indian companies. These exits
were either 'partly or fully', according to sources.
Most of these PE funds had invested in 2004 and 2005, while the exit came as the market rally started in March from 8,000 points to 13,000 points in May.
"The PE funds' exit is not because of any fear of a market crash. The market has now stabilised after the downturn, giving confidence to investors. PE funds, which invested in the 2005-06 period, find that this is as the right time since the current prices ensure better returns for them within the earlier planned investment tenure. The exit will create liquidity for investors that will help them reinvest in the market," Aditya Birla Private Equity managing director & CEO Bharat Banka told
.
Merger and acquisition activity also increased in the country, with many companies closing their earlier announced details. For example, companies like Concord Enviro Systems closed the merger of Reva Enviro Systems (undisclosed), while Dorf Ketal closed the acuisition of Sanmar Speciality Chemical's division, Intec Business.
