INDIA Trends and Developments Contributed by: Sidharrth Shankar and Rishabh Gupta, JSA
Conclusion As India marches toward its USD5 trillion economy goal, PE will play an even greater role in scaling busi - nesses, shaping markets and delivering long-term val - ue. For funds looking to do business or deploy capital in India, the key is to focus on patient, value-oriented capital, robust due diligence (especially on govern - ance and compliance), and local execution capability. Amid global uncertainty, India offers a relatively insu - lated growth story. Its demographic dividend, digital infrastructure and evolving capital ecosystem make it uniquely positioned for sustained outperformance, and private equity remains at the heart of that story.
• Post-Listing Retention – IPOs are no longer seen as binary exits even though there is now broad- based acceptance of offer-for-sale (OFS) structures (as opposed to primary fund-raises). Many spon - sors are retaining significant stakes post IPO, riding continued growth alongside promoters and public investors. Discounts to staggered on-market lot sales are now generally nominal, easing pressure on funds to liquidate large stakes at the time of listing itself. That said, secondary sales remain a powerful exit channel too. As many investments made in the 2017– 20 cycle mature, sales to strategic players and clean sponsor-to-sponsor exits, notably in healthcare, finan - cial services and consumer, are providing both liquid - ity and proof of institutional depth in the market. In the same vein, although still nascent in India, GP-led secondaries (including continuation funds and struc - tured liquidity solutions) are gaining currency among marquee funds. Sponsors managing high-performing, long-duration assets are now actively exploring con - tinuation vehicles to roll forward prized assets (either part-stake or wholly) offering liquidity to existing LPs, while maintaining rights and upside.
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