Private equity and venture capital firms made a significant exit through 17 IPOs in 2023, totaling a massive ₹10,007 crore. These firms sold stakes in companies like Delhivery, Zomato, and Paytm via block deals, making open market exits account for 57% of all exits value in August, according to a report IVCA-E&Y.
This year’s IPO rush has resulted in significant gains for entrepreneurs and investors. A total of ₹40,773 crore was raised through 46 mainboard public offers in 2023, with nearly half of this capital coming from private equity and venture capital firms. Of the offers-for-sale capital, PE/VC firms made as much as ₹10,007 crore across 17 IPOs, as per data Primedatabase.
The largest IPO of Mankind Pharma saw PE/VC exits amounting to ₹3,244 crore. Furthermore, companies like Concord Biotech, R R Kabel, Honasa Consumer, and Tata Technologies also witnessed substantial PE/VC sell-offs.
The opening up of the IPO market has been good news for PE and VC investors. Fazal Ahad, managing director at Merisis Advisors, stated that the revival of the IPO market is good news for investors. The bull run of stock markets has led to numerous block deals large PE/VC investors, with 29 large block deals since September.
Looking ahead, experts believe that the buzz in the primary and secondary markets indicates a maturity in the VC ecosystem. As many as 30 unicorns valued over $1 billion are expected to become IPO-ready next year. This trend is also paving the way for smaller startups to enter the market earlier in their growth.
Overall, the increasing number of companies entering a state of maturity suggests that FY25 will be a better year for serious large-scale exit gains. For now, it appears to be an open season for PE/VC investors to chart their exit strategy.