With the markets looking up,
large private equity investors are bullish on
Indian corporates, once again. This time, their
targets are both listed and unlisted companies
that have either incurred huge capital expenditure
recently or have drawn up mega expansion programmes.
At least a dozen deals have
already been clinched, while over 20 companies
are in final discussions with investors. The target
sectors include steel, power, infrastructure,
finance, sugar and engineering/construction. There
is also an interest in companies that serve the
mass customer markets, ranging from banks, pharmaceuticals
and coffee chains. Samtel Colour, Astra Micr-owave
Products and Suzlon Energy are among some companies
that have recently concluded private equity deals.
Private equity investors are
in talks with companies such as Nagarjuna Construction,
Hotel Leela, Bata India, Cholamandalam Finance,
Sundaram Finance and Bank of Rajasthan. Punj Lloyd
is said to be in final talks with Merlion Fund
— a joint venture fund floated by StandardChartered
Bank and Temasek — to offload equity.
All major equity investors
such as Actis (formerly known as CDC), Temasek,
Warburg and ChrysCapital, ICICI Ventures, NewBridge,
CVC International, HSBC, and smaller investors
like Ankar Capital Managament, New Vernon, Merlion
and GW Capital, are busy looking at potential
companies.
