Catch of the day: PE/VC funds reel in Rs 1.13 trillion in share sales

Net big from small and midcap exits

Private equity and venture capital (PE/VC) funds have sold shares worth a record Rs 1.13 trillion in listed and initial public offering companies this year, exceeding 2023’s total of Rs 97,500 crore. The increase in activity within the secondary market, especially among small and midcap stocks, drove these exits.

 

An analysis by Nuvama Alternative & Quantitative Research shows that 103 companies saw PE firms exit partially or fully, up from 78 in 2023. Eighty-two per cent of these exits were in the small and midcap sectors, with financials, consumer discretionary, and healthcare leading the way. Foreign PE/VC funds were responsible for nearly two-thirds of the share sales.

 

Nuvama observes, “Buoyant markets and strong domestic participation have facilitated smooth exits for PE/VC firms and promoters. Robust domestic inflows are expected to continue, providing liquidity and creating a cascading effect in private and secondary markets.”

 

Notable exits this year include Alibaba’s sale of Zomato shares, Blackstone’s departure from Mphasis, and Warburg Pincus’ sale of Kalyan Jewellers shares.