TPGV cautious on investing in India
Private equity firm, Texas Pacific Group Ventures (TPGV), which has a $17 billion corpus on Friday said it finds Indian companies valuations too high to invest and would rather wait for the right opportunities before putting money into this emergi...
By PTI |
NEW DELHI: Private equity firm, Texas Pacific Group Ventures (TPGV), which has a $17 billion corpus on Friday said it finds Indian companies valuations too high to invest and would rather wait for the right opportunities before putting money into this emerging market.
"The physical manifestations of the economic growth of India look very good. However, on the financial front the descriptions are completely diferent. At present in India the valuations are high," Texas Pacific Group Ventures Managing Director Vivek Paul told media here on the sidelines of the HT Leadership Summit.
Citing the example of Vietnam, where the fund had recently invested in a few companies, he said, "The valuations are eight times higher than last year's earnings there. But in India it is 25 times higher," Paul said.
He said private equity firms, which had entered the Indian market earlier, were at a more comfortable stage as compared to a late entrant like TPGV. "Private equity investors are not momentum investors," he said.
He, however, said the company has not completely ruled out investing in India as it was still scouting for the right opportunities.
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"I have looked at various space ranging from tech companies, specialised KPOs, animation, pharmaceuticals, retail, airlines, manufacturing outsourcing, automotive to hospitals and biotech but am still awaiting the right opportunity," he said.Paul, who had quit infotech major Wipro Technologies last year to join the fund, said India's growth does not necessarily translate into financial investibility.
The company usually invests a minimum of $30 million and a stake of around 20 per cent minimum. So far it has invested only in one truck finance company called Sri Ram Truck Finance Co.
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