BUSINESS

PE deals in telecom retail survive market crash

July 01, 2008 19:08 IST
Out of the total 63 deals, 48 (76 per cent) are in losses, while 15 have registered profits. In the BFSI sector, as many as eight deals out of the 15 are in profits.

Some of the significant deals include private equity firm FMO's 14.48-million-dollar investment in Magma Leasing, Singapore based investment group Orient Global's 26.88-million-dollar investment in domestic brokerage firm India Infoline, ICICI Venture's $44.57-million investment in Centurion Bank of Punjab and French banking group BNP Baribas' 50.14-million-dollar investment in stock broking firm Geojit Financials.

In the telecom and media sector there were three deals, out of which two have reported negative returns. Singapore based Temasek Holdings $1,295.56-million investment in telecom major Bharti Airtel posted profits of as much as 27.75 per cent till date.

Similarly, in the retail segment, there were four investments, out of which only the funds pumped in retail major Provogue reported a massive profit of as much as 103.99 per cent while the investments made in Archies, House of Pearl and Vaibhav Jems reported negative returns.

Due to continuous downfall and tough market conditions this year, the overall till-date return on PIPE deals of 2007 is down 16.67 per cent on volume basis.

Barring BFSI, telecom and retail all the other sectors ranging from IT & ITeS, infrastructure, healthcare and life sciences, manufacturing and real estate reported negative returns.

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