The market meltdown and the hardening interest rate regime since the beginning of the current calendar year has hit the foreign venture capital investors (FVCI) funds? investment into the real estate. However, the venture capital funds (VCF) have hiked their investment into the same sector during the corresponding period.
According to the data released by Sebi, FVCIs have invested Rs 2,141 crore in the quarter ended on December, 2007, which has come down to Rs 1,424 crore in the quarter ended June 30, 2008. On the other hand, the VCFs have invested Rs 4,207 crore in the December quarter whereas they put in Rs 4,862 crore in the June quarter this year. Similarly, the FVCI investment in industrial products dipped from Rs 1,312 crore in December to an investment of Rs 823 crore in June. In line with FVCI, VCFs have increased their investment from Rs 1,134 crore in December to Rs 1,478 crore June.
Likewise, the FVCI fund flow into the telecommunication has dipped marginally from Rs 872 crore in December to Rs 866 crore in June. The VCFs have increased their stakes from Rs 118 crore in December to Rs 191 crore in June.
Contrary to this, the FVCI have shown their interest in the pharmaceuticals sector. They have increased their investment from Rs 360 crore in December to Rs 642 crore in June. Whereas, VCFs have marginally hiked their investment from Rs 716 crore to Rs 781 crore during the corresponding period.
Another important sector, IT, has attracted good investment from FVCIs. They have invested Rs 1,390 crore in December and increased their investment to Rs 1,545 crore in June. However, VCF investment has gone up marginally from Rs 779 crore in December to Rs 776 in June this year.