Private equity: India Vs China
Summary :
Table of Contents
- Concept of PE
- The global scenario
- The India opportunity
- PE: Taking off in 2005
- The Indian PE market
- How Indian PE differs from ROW
- Factors favouring PE in India
- Looking ahead
- India or China?
- Valuation
- Bullish long term
- Evolving capital markets
- Local partnerships
- Banking and finance
- Exit options
- A false debate?
- Venture capital
- The case of Silicon Valley
- Models followed
- The role of QIP in the Indian stock market
- Types of issues
- What is QIP?
- Need for QIP
- Guidelines
- QIP vs public issue and GDR
- Recent developments
- Examples
Abstract
private equity is when a firm's shares are held privately and not traded in the public markets. PE includes shares in both mature private companies and, as venture capital in newly started businesses. As it is less liquid than publicly traded equity, investors in private equity expect on an average to earn a higher equity risk premium from it. In 2003 the global private equity markets started emerging from the ravages of the Internet era and the subsequent US economic slowdown. india felt the ripple effects of the Internet bust just as hard as the US -more than 90 per cent of the country's private equity money came from the US. In addition, like in the US, investors had lost millions of dollars in futile dotcom investments.
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