Tuesday, August 19, 2008

Kolkata experiencing a rise of Foriegn Private Equity deals

There is some light in the end of the tunnel. The investment scenario of kolkata, looks better with new experience of rising Foreign Private Equity deals.Mostly they are on the real estates.In addition over past 18 months, several large PE transactions have been concluded, including to an enterprise level hospitality exposure by Credit Suisse, in Park Hotels.

The inflow of organized private equity began with New Vernon taking exposure in an IT building project developed by Sureka Group in association with Bikram Dasgupta's Globsyn. UK REIT then invested a significant amount in residential projects being developed by the Eden group.

The largest private equity exposure in terms of project size came from Starwood Capital and Walton Street into a 150 acre mixed use project being developed by the Sriram group in Hindustan Motors near Uttarpara. Both have pumped $50 million each into the development. The PE funds have started operation for quite some time. Now,they are concluding transactions and deploying money into projects.

Factors which has gone in favor of kolkata on the rise of P.E deals

1. Educated population and qualified workforce
2. Good Infrastructure
3. Stable Government
4. Bright Future with abundant talent pool

2008, will witness the conclusion of 10 more private equity investments in Kolkata, taking the total investments from PE funds into projects in Kolkata to over Rs 1,000 crore.

However , there has to be some mechanism also developed that the enemy of Bengals, are somewhat managed in a proper way,that the friction free growth of private equity continues. One of the most significant enemy, for the investment situation Bengal , is the propensity of calling strike on any and every occasions and paralyzing the investment prospect of the state.

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