Private Equity Players Making Smart Exits!!

private equity players

Private equity players have finally made smart exits after the market turned northward during the last five months.


PE players sold PE shares worth about Rs 1,500 crore during this period using the bulk and block deal window.

According to an ET analysis, selling primarily took place during the month of May and August, 2009 and major sellers included Chrys Capital and Citigroup Venture Capital.


According to Jagannadham Thunuguntla, equity head at SMC Capitals, the severe correction in the stock market during the year 2008 resulted in substantial losses to private equity players which invested in listed companies.

The recent upward movement of the market helped in recovery of their losses.

This is also the main reason for private equity players selling their stakes.


As per another Expert, there are two main reasons for exit of PE players.

“Everyone is doing a business and one needs cash to carry out businesses. Market crash during September-October last year evaporated the liquidity” said an expert.


The positive rally of the equity market started on March 9, 2009. Since then the Sensex, has gone up by more than 84%.

In a block deal a minimum quantity of 5 lakh shares or shares with a minimum value of Rs 5 cr is transacted through a single transaction window provided by the stock exchange.


Whereas, if more than 0.5% of the number of equity shares of a company gets traded under a single client code, it is known as bulk deal.


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