Therefore, it’s not surprising that a few sectors
become the flavour of the year at some point in time and others occupy those slots at some later stage. At present, PE players are gung-ho about investments in infrastructure. At a recent seminar, Shivani Bhasin, a Principal in IDFC private Equity, said that India will invest nearly $450 billion in infrastructure over the next five years, and thanks to several incentives given by the government to private players, investment in the sector will double to 8% of the country’s GDP in the same period.
The other exciting sectors for the PE firms now are media and telecom infrastructure. Warbug Pincus has invested $33.33 million for a 7% stake in Dainik Jagran. The opportunities are so large that no one wants to miss the bus in the print media; global private equity investor Blackstone Group has invested $275 million in the Hyderabad-based Ushodaya Enterprises, the owners of Eenadu and ETV. Temasek Holdings, Investment Corp. of Dubai, Goldman Sachs Group, and others have invested $1 billion for a 10% stake in Bharti Infratel (the wholly-owned telecom tower subsidiary of Bharti Airtel). In addition, Kohlberg Kravis Roberts & Co put in $250 million for an estimated 2% stake in Bharti Infratel.
Competition and competitors are yet another set of parameters that investors like to dwell upon before zeroing in on their investment decision. Putting forth his view on the issue, Anubhav Gupta (Investment Analyst, Kim Eng Securities India) says, “The current competitive advantage possessed by the investee firm, the investee’s market and competitive position and the current competitors are certainly considered by the investor.” Therefore, New York Life Investment Management India Fund pumped in Rs.225 million in Avesthagen, a systems biology firm, because the latter has the potential to develop valuable intellectual property portfolio. Similarly, the PE firm’s $25 million infusion in Sarvana Global Energy was because of the cost competitive edge of the latter.
become the flavour of the year at some point in time and others occupy those slots at some later stage. At present, PE players are gung-ho about investments in infrastructure. At a recent seminar, Shivani Bhasin, a Principal in IDFC private Equity, said that India will invest nearly $450 billion in infrastructure over the next five years, and thanks to several incentives given by the government to private players, investment in the sector will double to 8% of the country’s GDP in the same period.The other exciting sectors for the PE firms now are media and telecom infrastructure. Warbug Pincus has invested $33.33 million for a 7% stake in Dainik Jagran. The opportunities are so large that no one wants to miss the bus in the print media; global private equity investor Blackstone Group has invested $275 million in the Hyderabad-based Ushodaya Enterprises, the owners of Eenadu and ETV. Temasek Holdings, Investment Corp. of Dubai, Goldman Sachs Group, and others have invested $1 billion for a 10% stake in Bharti Infratel (the wholly-owned telecom tower subsidiary of Bharti Airtel). In addition, Kohlberg Kravis Roberts & Co put in $250 million for an estimated 2% stake in Bharti Infratel.
Competition and competitors are yet another set of parameters that investors like to dwell upon before zeroing in on their investment decision. Putting forth his view on the issue, Anubhav Gupta (Investment Analyst, Kim Eng Securities India) says, “The current competitive advantage possessed by the investee firm, the investee’s market and competitive position and the current competitors are certainly considered by the investor.” Therefore, New York Life Investment Management India Fund pumped in Rs.225 million in Avesthagen, a systems biology firm, because the latter has the potential to develop valuable intellectual property portfolio. Similarly, the PE firm’s $25 million infusion in Sarvana Global Energy was because of the cost competitive edge of the latter.
