India PE exits up in Q2

The number of second quarter exits showed an increase from the previous quarter, and some firms reaped large exit multiples.

Private equity firms exited 29 Indian companies during the quarter ending in June as public markets were slightly more favorable, according to a report from Venture Intelligence.

The exit volumes were 38 percent higher than the same period one year ago and up 21 percent from the previous quarter.

The highlight of the quarter was India’s only private equity-backed IPO – JustDial, an Internet search firm, which resulted in a 10x return for some investors, according to Venture.

SAIF, Tiger Global, Sequoia Capital India and SAP Ventures together owned 80 percent of JustDial for a combined worth of about $167 million.

The IPO exit brought SAIF a return of more than 10x, Tiger Global, 7.3x, Sequoia Capital India more than 2x and SAP Ventures 1.3x, according to Venture.

 India's Q2 PE exits  
 Share sales of listed cos  9
 Sales to strategics  7
 Secondary sales  6
 Share buybacks  6
 IPOs  1

Source: Venture Intelligence

TPG also had a high exit multiple via the public market. The firm completed a phased exit of its 2006 investment in truck finance firm Shriram Transport Finance through a public market sale of shares for a 6x return, the report said.

Also during the quarter, Partners Group, which has been bullish on India investments, made its first direct investment in an Indian company through a $270 million secondary buyout of CSS Group.

Partners' purchase of the IT services firm represented an exit for a group of investors that included SAIF, Goldman Sachs and Sierra Ventures.