The first two quarters of 2010 witnessed PE deals worth $4.29 billion compared to $4.32 billion in the entire 2009 calendar year
Witnessing a strong growth, private equity (PE) investment in India rose to $2.3 billion in the April-June quarter, taking the total PE inflows so far this year to $4.29 billion, reports PTI.
According to the monthly report of VCCEdge, the financial platform of VCCircle.com, private equity deals amounted to $2.3 billion in the second quarter of the 2010 calendar year against $990 million in the year-ago period.
An upturn was also witnessed in terms of the number of deals recorded in the said period. In the second quarter of this year, 24 PE transactions were effected, against 15 deals in the same period of 2009, the report added.
"Private equity investments in India continued to display steady signs of recovery in the second quarter of 2010. Deal value continued to increase for the sixth consecutive quarter and is nearly 3.5 times the value seen in Q1, 2009," the report said.
The first two quarters of 2010 witnessed PE deals worth $4.29 billion compared to $4.32 billion in the entire 2009 calendar year.
PE transactions worth $50 million and above accounted for 63% of the total capital invested during the quarter under review.
The largest PE transaction during the April-June period was Olympus Capital's $300 million investment in Tata Power's special purpose vehicle for developing Indonesian coal mines, followed by Temasek Holdings' $200 million investment in GMR Energy.
Another major deal was Temasek's acquisition of a 5% stake in the National Stock Exchange (NSE) for $175 million.
A sector-wise analysis shows that finance, energy and utilities were the most targeted sectors for investment, with deals worth $510 million, $320 million and $306 million, respectively.
In terms of the number of deals, the most active sectors were finance, consumer discretionary and information technology.
The top five deals accounted for nearly 42% of the total value of private equity deals in the second quarter of 2010.
Oil and gas exploration companies have not been able to meet their work commitments for the blocks they had won under the New Exploration Licensing Policy rounds because of a shortage of deep-sea drilling rigs
Faced with global shortage of offshore drilling rigs, the government today decided to give a three-year drilling holiday or moratorium to firms such as state-run Oil and Natural Gas Corporation (ONGC) and Reliance Industries (RIL), reports PTI.
The Cabinet Committee on Economic Affairs (CCEA) meeting chaired by prime minister Manmohan Singh approved a drilling moratorium from 1 January, 2008, on 30 exploration blocks — 16 of ONGC, 13 of RIL and one of Italy's Eni, official sources said.
Companies such as ONGC and RIL have not been able to meet their work commitments for the blocks they had won under the New Exploration Licensing Policy (NELP) rounds because of a crunch in availability of deep-sea drilling rigs.
Sources said the CCEA approved a drilling holiday from 1 January, 2008, to 31 December, 2010, for 30 blocks awarded in the fifth round of NELP.
Globally, oil and gas explorers are faced with huge shortage of drilling rigs as countries stepped up oil and gas hunt in the wake of the surge in crude oil prices in 2008.
Day-hire charges for a deep sea drill rig had shot up 250% between 2007 and 2008.
But for the drilling holiday, the companies faced huge penalties for not fulfilling their work commitments that included drilling of a certain number of wells.
The petroleum ministry had first moved the Cabinet for the three-year drilling holiday or moratorium in 2008-end but the proposal was withdrawn after the finance ministry wanted a system of incentives and disincentives introduced to reward and punish companies based on performance during the period.
A grade system of incentives and disincentives will differentiate between companies that have completed the drilling work programme in deepwater acreages, which are being considered for a rig moratorium within the proposed three-year exploration holiday period or earlier and those which fail to complete the work, sources said.
Fuel inflation rose sharply after the impact of fuel price hike by the government on 25th June. Auto fuel prices were raised by up to Rs3.50 a litre, while that of LPG and kerosene were hiked by Rs35 per cylinder and Rs3 a litre respectively
Annual food inflation eased to 12.63% for the week ended June 26th, but fuel inflation shot up to 18.02% after the hike in rates of petroleum products, reports PTI.
The rate of price rise of food items was 12.92% in the previous week ended 19th June.
Vegetable prices fell by over 4% year-on-year, led by a massive decline in rates of potato and onion. Potato became cheaper by over 42%, while onion by 8.75% on an annual basis.
Fuel inflation for the week under review, however, rose sharply to 18.02% after the impact of fuel price hike by the government on 25th June. Prices of petrol and diesel were raised by up to Rs3.50 a litre, while that of liquefied petroleum gas (LPG) and kerosene were hiked by Rs35 per cylinder and Rs3 a litre respectively.
Fuel inflation for the week ending 19th June stood at 12.90%.
Overall inflation for May was 10.16%, led by high food prices.
Food inflation had remained above the 16% level for most part of the year. However, it had fallen sharply for the week ended 19th June to 12.92%, from 16.90% in the week ago.