Private equity (PE) and venture capital (VC) investments in the southern states have reported a 31 per cent growth during the present calendar year (year-to-date) compared to the 2009 levels. During the present year, around $1.48 billion worth of deals have been reported across the four southern states, with the favourite destinations continuing to be Karnataka followed by Tamil Nadu.
According to Venture Intelligence’s data, a Chennai-based research company focused on PE and VC, Karnataka attracted investments worth $638 million, compared to over $1.06 billion in 2011, $1.125 billion in 2010 and $391 million in 2009. The number of investments stood at 43 during the present year, while it was 82 in 2011, 64 in 2010 and 48 in 2009.
Industry analysts say that southern India accounts for one in every three private equity/venture capital investment transactions in India every year and roughly a quarter of the total PE/VC investment value generated in the country. This makes the four southern states a hotbed of investment opportunities. Among the southern states, Bangalore is a hot destination, accounting for nearly half of the deal volumes in the region.
Tamil Nadu is the second attractive state for these investors, with $478 million worth of deals being concluded in 2012, as compared to $338 million in 2011. It may be noted that while Karnataka reported a drop, Tamil Nadu showed positive signs during this period. However, this was low as compared to $875 million in 2010 and $339 million in 2009. The number of deals concluded in Tamil Nadu during the present year was 22 compared to 26 in 2011, 33 in 2010 and 24 in 2009.
Kerala has attracted investments to the tune of $143 million in 2012 YTD compared to $110 million in 2011, $116 million in 2010, while Andhra Pradesh attracted $220 million in 2012, $1.03 Billion in 2011, $983 million in 2010 and $393 million in 2009.
The top-five deals since 2009 include Apax Partners investment of $375 million in iGate in January 2011, 3i and others’ investment of $273 million in GVK Energy in November 2010, $213-million investment by New Silk Route, StanChart PE, KKR in Coffee Day Resorts in March 2010, $200 million by Temasek in GMR Energy in April 2010 and another $200 million by SBI-Macquarie in GMR Airport Holding in March 2011.