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Warburg
Pincus LLC's sale of a part of its holding for $560 mn in
India's largest cellular player Bharti Tele-Ventures, earlier
this year was a sensation in the Indian investment banking
industry. Surely, this sale of stake through a block deal
put to rest doubts about the appetite and depth of the Indian
private equity market. What was spectacular was that this
largest stock trade in Indian history was done in minutes
indicating the ease with which the exit was done. Warburg
Pincus on its part has made $1.1 bn till now by selling two-thirds
of its stake in Bharti on a total investment of $300 mn between
1999 and 2001. The return on investment generated to Warburg
out of this investment was one of the best in its history.
The
Indian private equity market is truly a happening place. Last
year saw more than a billion dollar in private equity investments.
This year has already seen an investment to the tune of half
a billion dollar and more than billion dollars in exits. The
private equity investments are expected to be around $2 bn
this year. Many of the global majors in private equity are
either making new deals or increasing their bets by pumping
in more money into the deals already made. Some of the well-known
private equity players active in India are the US firms Blackstone
Group, Carlyle Group and General Atlantic Partners, and Britain's
Actis Partners. Local firms such as ICICI Venture Funds Management
Ltd. and Kotak are also stepping up investments.
The
overseas private equity firms which earlier dedicated only
about $50 mn to India have increased their exposure to hundreds
of millions of dollars. Many of these players have started
opening their offices in major cities like Mumbai, Delhi and
Bangalore and are poaching professionals with relevant experience.
This is creating a high demand for professionals in this area.
Some of the others are choosing to operate from overseas with
help from Indian advisors. |
