Private equity investments in listed firms have suffered a loss of as much as $850 million so far this year amid
continuous downfall and tough market conditions, a latest study reveals.
An analysis of private investment in public equity (PIPE) in 2007 shows that these deals in the country have lost
funds to the tune of 850 million dollars till July 14 this year.
The loss can be attributable to high entry valuations and the downward revision of risk appetite of the capital markets
this year, NEXGEN Capitals, the merchant-banking arm of brokerage firm SMC Global Securities, said in its latest
report.
Overall till-date-return on PIPE deals of 2007 on volume basis has declined by 16.08 per cent, the report added.
An industry wise return percentage so far this year highlights that \"wealth creation is highly imbalanced in different
sectors\".
In IT and ITeS sector, there was sharp dip in current mark-to-market values of around 41 per cent in PIPE deals of
2007. While, in inf