As growth potential remains strong and small and medium enterprise (SME) sector is looking to scale up, private equity players have lined up almost $1 billion to be deployed in India.
“We think that inflation and interest rates are short-term concerns and for long-term players it is not a concern as the growth potential remains strong,” said Andrey Purushottam, CEO, Helix Investments Advisors.
“A lot of activity is happening in the area of up to 20 million and around $1 billion is looking to get deployed in India. The challenge is that it is very hard to get information in this market area,” said David Danziger, director at Helix Investments.
However, in case of better known companies and where the PE players are looking to invest in excess of $100 million, there are not enough suitable options available, says Danziger.
Helix Investments, which has investments of around $35 million in the Indian businesses, is looking to deploy another $65 million in ticket sizes of up to $20 million.
On the kind of companies that Helix would invest, Purushottam said, “We like asset light companies and that filters out real estate, construction and large power projects. We like services companies more and are exploring our options.”
“There are funds who are saying that there focus is on public equity but they will do so with a private equity approach and thus will not trade in short-term,” said Purushottam.