Private Equity

Summary: Private equity exits by way of secondary sales of controlling stakes have become the dominant path to monetisation in India. Price still matters, but certainty decides outcomes—through disciplined auctions, vendor-led diligence, insurer-backed risk transfer and early stakeholder alignment to close quickly and cleanly.

A few clear trends are beginning to define how private equity exits by way of secondary stake sale are executed in India. The surge in control deals struck almost a decade ago is now translating to monetisation, with funds actively seeking full exits. These transactions are no longer judged purely on valuation; their success is now equally a function of process sophistication — compressed timelines, seller-driven diligence, insurer-backed protections, and carefully sequenced stakeholder alignment.Continue Reading When PEs Bid Adieu: Recent Trends in Private Equity Exits Through Secondary Sale

MCA’s Notification on Section 67 of the Companies Act, 2013

Introduction

One aspect which English Company Law has always grappled with is the manner in which the capital of a company should be protected for the benefit of its creditors. Way back in 1887, in its celebrated decision in Trevor v Whitworth[1], the House of Lords held that the statutory restrictions on a company’s power to reduce its capital “is to prohibit every transaction between a company and a shareholder, by means of which the money already paid to the company in respect of his shares is returned to him”.Continue Reading MCA’s Notification on Section 67 of the Companies Act, 2013 – Is it an Exemption or an Inclusion under the Henry VIII Clause?

PRIVATE EQUITY IN A COVID-19 WORLD - ASSESSING THE IMPACT OF THE PANDEMIC ON PE INVESTMENTS IN INDIA Blog

As the global tally of COVID-19 cases rises steadily, the pandemic has proven to be an unprecedented public health emergency of our time. With nations enforcing social distancing, lockdowns and travel restrictions, the global economy has witnessed a drastic downturn. Closer to home, in India, RBI has warned of a growth slowdown, and the capital markets have slumped. Private equity investments in the country have taken a hit, and the pandemic has caused investors to reassess new and existing investments.

Given the likely economic aftermath of COVID-19, key issues that have come to the forefront are: (a) whether COVID-19 constitutes ‘material adverse effect’ or ‘material adverse change’ (hereinafter, referred to as “MAE”) under existing agreements; and (b) with the economic uncertainty in the backdrop, the manner in which price or value of new deals can be accurately determined, going forward. This post sheds light on the abovementioned issues and chalks out ways to redress the same.
Continue Reading Private Equity In A COVID-19 World: Assessing The Impact Of The Pandemic On PE Investments In India

Global trends in private M&A

This guest post is by Jaya Gupta, Head of India Desk, Corporate at Allen & Overy LLP
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In 2019, global M&A activity switched down a gear although it was still the third-strongest year in a decade in terms of value and transaction volume.

With macroeconomic issues such as continuing trade wars between the US and China, tensions in the Middle East and, to some extent, Brexit, impacting cross-border activities, many investors resorted to strategic domestic megadeals.Continue Reading Global Trends in Private M&A

Evolving Private Equity Trends in India – Buyout Transactions

INTRODUCTION

Private equity (PE) transactions in India conventionally comprised minority investments in Indian companies. However, maturing market conditions and an increasingly favourable regulatory landscape have been providing tailwinds to PE firms to undertake buyout transactions. Many PE firms investing in India have gained significant experience to deal with the governance and regulatory risks that Indian markets pose. This enables them to leverage their expertise from running businesses globally to managing businesses in India.
Continue Reading Evolving Private Equity Trends in India – Buyout Transactions

Private Equity Blog - Control Deals Acquisition

Private equity (PE) investors have traditionally invested in the Indian marketplace as ‘financial investors’, acquiring a minority stake in their target with negotiated contractual rights to oversee their financial investments.

The past few years have borne witness to the trend of acquiring “controlling stakes” in the target. Data gathered from public sources suggest that the total value of control deals in India went up from USD 4.8 billion in 2017 to USD 5.9 billion in 2018.
Continue Reading Is Private Equity the New ‘Strategic’? Control Acquisitions are Here to Stay!