Indian Realty Sees Private Equity Firms’ Faded Zeal

Private equity firms show low interest to invest in Indian Realty and infrastructure. India witnessed a deep fall in the Private equity investment in the last year.
Indian Realty loses its attracting charm

Indian Realty loses its attracting charm.

According to a report by Grant Thornton, a leading global accounting firm, the Private equity firms have lost their interest in the Indian Realty and infrastructure. As per the Grant Thornton report $ 7.4 billion was invested in India by the private equity firms in 2012. Private equity investment of 2012 is comparatively very lower to the same of the previous year in which $8.8 billion was invested, the report adds.

The report shows that there was a 15% fall in the Private equity investment in the realty sector.  Though there was a 0.4% increase in the number of private equity deals in 2012, the amount was lower. Though there was an overall fall in the Private equity investment, Grant Thornton is optimistic about the year 2013.

Private Equity firms lose interest in Indian Realty

Private Equity firms lose interest in Indian Realty.

Central Government initiated some positive steps which are expected to bring the investors back to India. However they were initiated to attract any investors in 2012; but it was too late.

Speaking to the media persons, Mr. Harish HV partner, Grant Thornton India, said that India is expected to receive better amount of investment. He added that there may not be a big increase in the number of private equity deals, but possibly an increase in the amount of investment.

As a whole the previous year was not at all satisfactory for the investors. There was a sharp fall in the amount of investment in all the sectors among Infrastructure stood top on the list with a fall of 59%. With a 33.4% fall in investment, real estate came to the second spot while the investment in the banking and financial services sector fell by 15.7%.

Other sectors such as IT and ITeS, Indian Pharma, healthcare & biotech, etc. have received a rise in the investment. If the IT and ITeS saw a 19% growth of investment, it was over 200% in the Pharma and Health care sectors. If the investors’ sentiments are leaned to the other sectors what Indian realty can hope? Anyway it seems that the government’s plans to persuade the foreign investors are so far on the right track.

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