2023 saw maximum PE and VC exits from India, says Nuvama

Major exits were seen in Paytm at Rs 12,900 crore followed by Coforge at Rs 10,900 crore and Mankind at Rs 8,800 crore

The calendar year of 2023 saw the most private equity and venture capital exits in the history of Indian markets, said Nuvama Institutional Equities in a report. About 78 companies witnessed PE exits, which totalled Rs 97,500 crore.

Major exits were seen in Paytm at Rs 12,900 crore followed by Coforge at Rs 10,900 crore and Mankind at Rs 8,800 crore. Alibaba, Berkshire Hathaway, and SoftBank Corp exited Paytm this year. Baring Asia exited Coforge while  ChrysCapital and Capital International exited Mankind.

Major private equity exits were seen in financials, which was 45 percent of the total exits in 2023. Financials was followed by consumer discretionary and IT, which made up 18 percent and 11 percent of the total exits, respectively.

However, 2023 was an exciting year for the stock market as it logged the second-highest number of mainboard IPOs in over a decade with over 57 Indian companies collectively raising Rs 49,000 crore in the year.

Foreign private equity and venture capital funds dominated the exits with an 83 percent share in total exits in 2023 which totalled Rs 81,200 crore in total exits in 2023.

"The stellar rally in the midcap and smallcap delivered lucrative exits for investors, as 80 percent of CY23 deals were from this category." said the brokerage firm.  Midcaps made up 50 percent of the total exits and smallcaps made up 30 percent of the total exits.

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