Date:06/08/2008 URL: http://www.thehindubusinessline.com/2008/08/06/stories/2008080652021400.htm

Back Venture capital inflow slows down in realty sector in June quarter

Our Bureau

Mumbai, Aug. 5 Venture Capital Funds (VCFs) and Foreign Venture Capital Investors (FVCI) have reduced their investment in real estate companies during the June-2008 quarter. However, the overall investment by VCFs and FVCI rose a modest 2.2 per cent to Rs 32,379 crore against March quarter figure of Rs 31,682 crore, according to a latest data available with SEBI.

The report has been compiled on the basis of quarterly information submitted to SEBI by registered VCFs and FVCIs.

While flows into real estate fell nearly 14 per cent to Rs 6,286 crore from March end quarter figure of Rs 7,285 crore; the other sector that took a hit was biotechnology, where their investment slipped to Rs 346 crore from Rs 385 crore.

However, media, Industrial and services sectors witnessed growth in inflow from VCFs and FVCI.

Their investments in media amounted to Rs 672 crore (Rs 495 crore), industrial Rs 1,843 crore (Rs 1,559 crore) and service sector to Rs 2,737 crore (Rs 2,431 crore).

Their investments in pharmaceuticals remained stagnant at Rs 1,423 crore (Rs 1,420 crore); while IT saw marginal improvement at Rs 2,321 crore (Rs 2,260 crore), telecom sector witnessed a decline in investments at Rs 1,057 crore (Rs 1,081 crore).

The overall investment from these funds have been witnessing steady climb since September 2007. Their investments grew from Rs 23,218 crore to Rs 31,682 crore.