INTRODUCTION
Private equity (PE) transactions in India conventionally
comprised minority investments in Indian companies. However,
maturing market conditions and an increasingly favouring regulatory
landscape have been providing tailwinds to PE firms to undertake
buyout transactions. Many PE firms investing in India have gained
significant experience to deal with the governance and regulatory
risks that Indian markets pose. This enables them to leverage their
expertise from running businesses globally to manage businesses in
India.
Sources indicate that buyouts contributed to 25% of all
investments made in India over the last 3 years. Buyout
transactions offer PE firms control over the management, capital
structure and exits. . Such investments, targeting sectors like
real estate, IT services, financial services, technology and
telecom, are on the rise. Public sector banks and large
conglomerates offloading their non-core assets due to stressed
balance sheets, and
