PE investment outpaces IPO fundraising by 60% in last six years - report
Private equity and venture capital investment in India reached nearly $50 billion in the last six years compared to $31 billion raised through IPOs during the period, according to a report published by Grant Thornton and the Indian Private Equity and Venture Capital Association.
The report estimates that the total market value of listed companies with private equity backing is $200 billion - based on the assumption of an average stake of 25% - and that they account for about 15% of the overall market.
According to AVCJ Research, private equity fundraising reached nearly $29.5 billion for 2006-2010, with 181 vehicles launched. There were 1,637 investments during the period, worth a total of $48.9 billion.
Sudhir Sethi, chairman and managing director of IDG Ventures India, expects private equity and venture capital investments in the country to reach $70-75 billion between 2010 and 2015, The Hindu Business Line reported. Around $22 billion of this is likely to be required for follow-up funding in existing portfolio companies.
A further $30 billion is expected to be invested in around 2,000 companies in the IT, manufacturing, engineering, construction and healthcare industries.
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