India: PE firms opt for exits via secondary sales over IPO route

Photo: Hindustan Times

The challenges that the initial public offering (IPO) market faces are prompting private equity (PE) firms to opt for exits either through secondary stake sales to another PE fund or through a strategic investor, said industry experts.

“If the market slowdown continues for another six to nine months and does not normalize by March, these PE investors might start considering other exit options more actively,” said Subhrajit Roy, executive director and head, equity capital market origination, Kotak Investment Banking.

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