PE withdrawal will be done through market deals – pe withdrawal will be done through market deals

Avendus co-founder and executive vice-president Ranu Vora says that the methods of private equity deals in India are going to change as IPO activities are likely to be limited due to the instability of markets. This will increase and increase the investment activities of later rounds. He hopes that the activities of deals will be strong. However, they will be differently compared to the strengthening boom of the 2024 IPO.

Vora said, private equity deals in India were immediately around withdrawal. The IPO market number was then performing best in India. There is a possibility of much instability in the market this year, so it is difficult to repeat 2024. According to him, the duration for IPOs may be limited.

Vora hopes that the activities of deals will be strong, in which private equity will play an important role in meeting the funding needs of big companies in the later phase. He said that some firms may opt for personal ownership instead of waiting for a favorable public market situation.

He said, I hope the activities will be strong. Just their nature will change and a large extent from IPO to private and public mixture will be added to it. Emerging market conditions are also shaping the trend of merger and acquisition. Vora said, falling markets are useful from the perspective of merger and acquisition because if I am a businessman and the market is only fast, it is better to wait sometimes.

He said, the evaluation in the falling market becomes a bit real. I think there are opportunities for merger and acquisition where evaluation can cause more deals than being rational. It is also a chance for companies to think about how they will get out. Therefore, many decisions of merger and acquisition, decisions of integration can be inspired by this. This forces investors and entrepreneurs to think about methods other than IPOs.

First Published – March 12, 2025 | 10:20 PM IST