'Want to price IPOs at a discount so that all investors can make money,' says EQT's Jean Salata

EQT's Jean Salata

Global private equity giant EQT, which has invested more than $6 billion in India over the last 18 months, is keen on pricing its forthcoming public issues with an eye on creating value for all investors. That's the word coming in from Jean Salata, chairperson EQT Asia and Head of Private Capital Asia.

"When we take a company public, it doesn't meant we want to exit the company, it's the beginning of a journey towards modernisation and the only way that we can develop a reputation as a high- quality private equity firm which invests in high-quality businesses is that when we take companies public, they continue to create wealth," Salata said during a media roundtable in Mumbai on December 5.

He elaborated, "The only way we can do that is to price our offerings in a way that everybody can make money. That's the whole point. We are not trying to maximise the value on day one. That doesn't achieve our objective."

Investment major EQT, which is backed by one of Europe's prominent industrial families , Sweden's Wallenberg's, listed its portfolio company Sagility India on the domestic bourses on December 12 and the firms share price has risen by more than 28 per cent since it's market debut.

What about the listing plans of other portfolio firms like HDFC Credila and Indira IVF in 2025?

Hari Gopalakrishnan, Head of EQT Private Capital India, did not mention any specifics but added, "We have returned $2.4 billion out of India in the last 24 months. Like Sagility, we have multiple discussions underway but the timing depends on individual company factors and the market (environment). We are always evaluating all options."

On September 21, Moneycontrol reported that the country's top education loans financier, HDFC Credila Financial Services which was acquired in June 2024 by a consortium of EQT and home-grown private equity firm ChrysCapital from the HDFC Group, has shortlisted five investment banks as advisors as it gears up to float a big-bang initial public offer (IPO) in 2025.

Top IVF clinic operator Indira IVF is also weighing a $400 million IPO, Bloomberg reported on November 25.

Salata feels the buyout market is "underpenetrated" in India and EQT seeks to replicate the success achieved by the firm earlier in the IT services segment with similar, control deals in the healthcare and financial services segment.

Last year, EQT sold its remaining 26.6 percent stake in Coforge, a Digital IT Solutions & Technology Consulting Services provider, through a mega $ 924m block trade.

On September 9, ChrysCapital group signed a definitive agreement to sell a controlling beneficial interest in GeBBS Healthcare Solutions Private Limited, a provider of revenue cycle management (RCM) services and risk adjustment solutions to EQT, which pipped rival Hillhouse Capital in the final lap.

"We are very bullish on India and want to ramp up our real estate and infra investments," Salata said, but ruled out any immediate bets in the domestic startup space.

"It's (startups) a different skill set. It's not really where our expertise is," the Chilean-born executive based in Hong Kong said, even as he acknowledged that sovereign wealth funds are increasing their interest in the Indian market.

When posed with a question on the firm's specific strategy in the healthcare segment, Gopalakrishnan shared that opportunities in diagnostic chains, medical devices and pharma will also be evaluated by the firm.