At $2.8 bn, PE exits doubled in June quarter

Illustration by Ajay Mohanty
Exits by private equity (PE) entities during the June quarter doubled from the corresponding period a year before, to $2.8 billion (Rs 8,000 crore) in 61 deals, mainly driven by public market sales.

The June quarter of 2016 had seen $1.36 bn of exits in 53 deals. The March quarter of 2017 had seen a record value of exits at $3.2 bn in 58 deals, according to market research firm Venture Intelligence.

Exits during the quarter were led by SAIF Partners’ from One97 Communications, which runs Paytm, for a return multiple of 26.5 time. SoftBank acquired the stake for $400 million. Three of the top five exit deals were through public market sales, while one was through an offer for sale (OFS) in an initial public offer. 

Warburg Pincus sold its shares in Capital First for $273 mn to gain a 4.54 times return, through public market sale. KKR sold Dalmia Bharat shares for $240 mn, a 4.27 times return Goldman Sachs sold its shares in Max Financial Services for $125 mn, with a return multiple of 3.7 times. Both these were also through public market sale.

ChrysCapital sold its shares in Eris Lifesciences through an OFS in an initial offer for $209 mn, a 6.91 times return. Venture Intelligence data showed PE investment rose 63 per cent to $5.4 bn (Rs 35,000 crore) in 124 deals during the quarter ended June, as compared to $3.3 bn across 145 transactions during the corresponding quarter of the previous year.