According to Indian Private Equity and Venture Capital Association (IVCA) President Arvind Mathur, private equity investment is expected to touch USD 12 billion by 2014, double then the amount invested last year by PE players. In the first half of the year, around USD 6 billion are pumped by the PE entities in India.
As ET reported, sectors like infrastructure, real estate and manufacturing are projected to see greater private equity activities, especially since the government is putting thrust on them. Besides, mobile-banking and e-commerce are expected to attract huge investments.
“Private equity investors are now looking India as a more investment friendly destination,” Mathur added.
IVCA’s purpose is to support management and investment issues in PE and VC in India including entrepreneurial activity as well as the development and maintenance of a PE and VC industry that provides equity financing.
Indian Express says: Recently, global consultancy firm Grant Thornton, said PE deals for the first eight months of the current calender year stood at USD 7.7 billion including deals worth USD 526 million sealed in August alone.
It added that there has been a significant uptrend this year both in terms of number and value of deals with 389 PE transactions worth USD 7,698 million being sealed during the period as against during 286 PE deals worth USD 7,408 million in January-August 2013.
As per Grant Thornton, information technology & ITeS sector garnered the maximum number of deals during the year and e-commerce continued to dominate the PE space in August, with homegrown online retail giant Flipkart successfully raising USD 1 billion investment in July.
More from ET: Another expert, Ameet Patel Partner at Sudit K Parekh & Co has attributed rise in investor sentiments to “strong corporate friendly government at the Centre, coupled with strong RBI Governor(who created foreign exchange reserves for the country) as well as equally strong securities market regulator Sebi –who have made some pro-active regulations.”
Now, private equity industry is expected to contribute to the growth of the country’s economy on a larger scale than earlier, Patel said.
Image credit: IBN LiveCategory Business Investments