More than 1 percent of the total Indian equity market capitalisation has exchanged hands in large deals worth Rs 3 lakh crore in 2022 so far.

Share Market Live

NSE

We take a look at the large deals that have taken place through the year and also analyse the reasons behind the same.

The year will also be known for the large deals that took place in new-age businesses that saw pre-IPO investors scramble towards the exit door as fancy valuation metrics of these companies saw a crash landing.

However, the liquid Indian market allowed early Private Equity investors to make manifold returns in their investments.

Factors Behind the Large Deals

The reasons for these large trades have been manifold. Anchor Investors have exited in-part or totally in new listings as anchor lock-ins opened up even as PE funds eyed strategic level exits. Select block deals also were triggered to adhere to regulatory requirements, case in point being in the insurance space. Other reasons included restructuring & simplification of group holdings.

Few of the largest deals

KKR managed to get a 5x return in four years in Max Healthcare, making it the largest exit for the fund in India. The stake sale in August 2022 was valued at over Rs 9,000 crore. The Canadian Pension Plan Investment Board (CPPIB) trimmed its stake in Kotak Mahindra Bank, while Blackstone exited a major chunk in Sona BLW Precision forgings after a partial exit during the IPO as well.

KKR managed to get a 5x return in four years in Max Healthcare, making it the largest exit for the fund in India.

Financials like HDFC Life, SBI Cards and HDFC were in focus as strategic investors, Regulatory requirements and PEs trimmed stake, while a family level restructuring saw the Triveni twins in focus in the month of September.

Financials like HDFC Life, SBI Cards and HDFC were in focus as strategic investors, Regulatory requirements and PEs trimmed stake

Prior to the mega merger in the media Space between Zee & Sony, Invesco Funds trimmed their stake, while CDC group completely exited their stake in Rainbow Children's Medicare.

New Age Listings Face The Hit

A lot of focus has been on the new age listings, as investors made a beeline to the exit door in these names, even as markets scrambled to understand the valuation metrics for such companies.

Uber fully exited it’s stake in Zomato , while PE funds trimmed their holdings significantly as anchor lock ins opened up in other names.

Worries for external PE funds in their own portfolios too contributed to certain exits in this space.

Softbank’s global woes forced their hand in them exited sizable chunks in Paytm & Policy bazaar. PEs also made meaningful exits in Nykaa & Delhivery.

Also Read: Paytm loan distribution jumps 150% in October-November to 6.8 million

First Published:Dec 12, 2022 2:49 PM IST