The PE firms have invested US$1.03 billion across 54 deals during the quarter ended June 2009, a 17 per cent surge over the previous quarter, which saw 42 deals worth US$883.97 million, according to Jagannadham Thunuguntla

1. Is investment picking up?
JULY HAS kicked in with fresh rounds of investment action. The government has cleared a Rs11,000-
crore Foreign Direct Investment proposal from French tyre giant Michelin to set up a manufacturing facility
in Tamil Nadu. According to an official release, the Foreign Investments Promotion Board (FIPB) had
cleared the proposal under which the Compagnie Financier Michelin (CFM) will set up a wholly-owned
subsidiary to make radial tyres, tubes and ancillary tyre-related products at the plant.
Meanwhile, Naresh Trehan’s Global Health has raised a Rs500 crore debt. Four PSU banks have
participated in the debt syndication, which was completed within 60 days of its launch. The project
envisages construction of a 1,250-bed facility in Gurgaon at a total cost of Rs932 crores to be funded in a
debt-equity ratio of 1:10. The hospital is at an advanced stage of completion, and is expected to
commence operations from October 1, 2009.
Siemens Venture Capital has also said that it had acquired a stake in Transparent Energy Systems, a
Pune-based provider of energy. The Economic Times reported that Siva Ventures (SVL), the investment
arm of the NRI businessman C Sivasankaran-promoted Sterling Infotech Group, owns a 49 per cent
stake in Sahara Group’s Aamby Valley, which was floated to develop Aamby Valley City.
Overall, June also saw signs of recovery with The Economic Times reporting that, propelled by a recovery
in the stock market, private equity investment into the country shot up to US$1.03 billion in the June
quarter, with an increase of 17 per cent sequentially. The PE firms have invested US$1.03 billion across
54 deals during the quarter ended June 2009, a 17 per cent surge over the previous quarter, which saw
42 deals worth US$883.97 million, according to data compiled by SMC Capitals.
According to a report by research firm Venture Intelligence, the single-largest investment in Q2 was IDFC
PE and Oman Investment Fund’s Rs600 crore commitment to QuippoTelecom. This was followed by
Norwest Venture Fund’s acquisition of a 2.1 per cent stake in the National Stock Exchange for Rs250
crores. In the June quarter, the IT & ITES sector registered 12 deals worth US$67 million, followed by
healthcare and life sciences (six deals worth US$129 million) and BFSI (six deals worth US$116 million).