In the first half of 2005, private equity investment in India soared by 21% and reached US$534 million, via 42 transactions. This compared with US$440 million and 25 deals in the same period in 2004. Two decades since India first adopted venture capital, direct equity investment in India is undergoing a revolutionary change that points to new a direction of growth. An overview of

• evolution of venture capital in India
• Indias prevailing position in Asian private equity
• factors that govern private equity/venture capitals success in India
• investment approaches employed by both domestic and foreign investors to seize the countrys burgeoning opportunities

Private Equity/Venture Capital in India: The Challenges

Since May 2005, India registered the entry of Blackstone Group and welcomed the return of 3i plc which had halted its investment activities since 1995. Sources of Indian funds are no longer confined to multilateral organisations or development financial institutions. Global institutions such as CalPERS, Carnegie Foundation, New York Life Capital and Partners Group have all committed capital to Indian private equity funds. As India assumes an increasingly central profile in Asian private equity, what are the challenges facing Asian private equitys rising star? A discussion on

• whether India is measuring up to global standards
• the resources required for India to effectively compete for global capital on a long-term basis
• the promises and pitfalls of regulatory policies and its rudimentary infrastructure

Luncheon Topic: Beyond Taj Mahal
Infosys pioneered in having established operations in China. Tata Steel completed its first overseas acquisition in early 2005 in purchasing the steel assets of Singapores NatSteel. Indias aspiring corporations are making their footprints across the global corporate map. A dialogue with representatives of India Inc. on sustaining competitive edge on the global horizon

In the 18 months ending June 2005, an additional US$967 million of fresh capital has come into Indias private equity fund pool, while 93 companies attracted over US$1,833 million of commitment from private equity investors. How have both domestic and foreign private equity investors found in performing due diligence in India? Discussions, with live case studies on

• what is lacking for investors to perform thorough due diligence in the Indian private equity market
• whether the characteristic hurdles can be avoided
• the significance of having thorough understanding of legal and tax implications

Part I: Investment Structuring
Investing in listed companies (PIPE) is not only a trend but has also become characteristic to Indian private equity. In the first half of 2005, PIPE transactions accounted for 52% of the US$534 million investment aggregate in this period. Virtually all foreign investors hold their Indian assets through a Mauritius-based investment vehicle. A panel of speakers will address, with case studies on -

• the implications of the tax and regulatory parameters & currency inconvertibililty
• considerations on the investment structure
• applying the standard private equity investment structure in a PIPE deal

Part II: Valutaion
Buoyed by Indias burgeoning economy, valuations of Indian companies are on the rise, posting formidable challenges to private equity investors. This session examines, supported by case studies

• whether valuations have soared beyond realistic levels
• benchmarking companies valuations in the face of exponential economic growth
• managing promoters lofty expectations of valuations