Baring Private Equity to invest $750-mn in India

Mumbai: Baring Private Equity Asia on said it would invest up to $750 million from the just concluded Baring Asia IV fund in upcoming Indian companies.

“Baring Asia Private Equity Fund IV collected $1.51 billion making it the largest regional growth equity fund ever raised for Asia,” said Mr Jean Eric Salata, Founder and CEO, Baring Private Equity Asia during a media interaction here. “The new fund collection was three times the size of the last fund — Baring Asia III that collected $490 million,” he added.

Baring Asia has already invested 30 per cent of the fund capital of Baring Asia IV, and 40 per cent of this has been deployed in Indian companies. Baring is bullish on Indian companies and is interested in sectors such as alternative energy, media, financial services, and consumer and industrial infrastructure-related companies.

Baring has recently invested in both listed and unlisted Indian companies. Their latest investment has been in Hyderabad-based infrastructure development company Rithwik Projects Ltd. In March 2008, Baring Asia acquired 30 per cent stake in Rithwik, and also convinced the Rithwik management to withdraw its IPO plan. The company had filed its DRHP with the Securities and Exchange Board of India in September 2007.

Baring Private Equity also invested $65 million in broking firm Sharekhan in February. Among the earlier investments are Karvy Stock Broking ($44 million in November 2007) and KS Oil ($51 million in August 2007). Other recent investments are the fabric-to-garment manufacturing company Pratibha Syntex Pvt Ltd and Bhusan Power and Steel Ltd.

“Baring was one of the first private equity players to invest in Indian companies, in 1997; one of our first investments was the IT solutions company MphasiS which is in the news,” he said.