Private equity firms feel the pain of India's falling stock prices

Powai, Mumbai, Maharashtra, India. Photo: Aniket Bhattacharya

The crash in stock prices caused by the covid-19 pandemic, which has prompted promoters to provide more collateral to lenders, has also started to impact private equity investors.

The benchmark BSE Sensex fell 23% in March as panic gripped markets worldwide. Several stocks saw a sharper decline of 50% or more, leading to breach of covenants in loans taken against them.

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