A lot of private equity (PE) and investors had been exiting India. This was after investments made between 2007 and 2008 were about to reach maturity. The increased number of exits was amid the weakened currency of the country, poor macro-economic conditions and an unstable capital market.
In the second quarter of 2013, PE exits reached double to USD1.78 billion across 30 deals. This was higher compared to a previous USD884 million from 29 deals in the last quarter. The exits of private equity reached a fivefold increase in value on a yearly basis. There was also a 15% volume increase from the said exits. This was according to a report by PwC-MoneyTree India.
According to Sanjeev Krishnan, the Executive Director and Leader of PwC India's private equity division, "PE investors are likely to exit businesses that have performed well in the past six to seven years." This was despite the entire economic scenario of the country which could not be conducive for exits.
The IT sector had topped the list of PE exits in the second quarter of 2013. This was in terms of both volume and value. The exits had jumped from USD25 million at four deals to USD539 million in 10 deals. This was also higher than in the second quarter of 2012 where it only reached USD43 million, according to data from Venture Intelligence.
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