Exits by private equity (P/E) players via the stock markets, are picking up as the Sensex soars to new highs, reports Nitin Shrivastava in Mumbai. Last week Providence Equity Partners and General Atlantic Global exited some part of their holdings in Idea Cellular and IndusInd Bank, respectively. Open market exits in 2014 so far have totalled $ 1.7 billion across 126 deals, the second highest value clocked in the last seven years; in 2012, the value was $2.5 billion. Last Wednesday, the Sensex hit a lifetime high of 27,225.85 and, on the following day, Providence sold a 2.4% stake in Idea Cellular at R166.35 apiece, recording a three-fold return. General Atlantic sold a 1.23% stake in IndusInd Bank for an estimated R398 crore and retains a holding in the private sector bank.
PE investors have had a hard time selling stakes, taking home just over $31 billion in the last 6 years, as compared to $ 90 billion worth of investments made by them in last one decade, a report from Bain & Co. notes. With a number of IPOs slated to hit the market PE players can hope for easier exits; the listing of Sharda Cropchem will see Henderson Equity Partners making a near complete exit with spoils of R223 crore ($37 million) at the upper end of the band.