Block deals hit record as PES guard returns in rough Street

The combined value of block deals hit a record ₹1.87 trillion in FY23, up 63% from the preceding fiscal year, shows data compiled by Prime Database

- Ram Sahgal, Ranjani Raghavan

Even as new listings slowed sharply in FY23, the value of block deals hit a record during the year, as private investors booked exits to protect their returns at a time rising interest rates fuelled recessionary fears.

The combined value of block deals hit a record ₹1.87 trillion in FY23, up 63% from the preceding fiscal year, shows data compiled by Prime Database. The December quarter saw block deals worth ₹80,006 crore, the highest in any quarter.

“We have seen block deals by private equity and venture capital investors worth more than $10 billion in the last year," said Gaurav Sood, managing director and head of equity capital markets at Avendus Capital. “This was mainly because early investors, who have made significant returns in these companies, exited or reduced their stakes. Most of these sell-downs were by global PE funds that booked profits in successful investments, as globally, there is pressure to protect IRRs due to ongoing recessionary fears and volatility. These deals by PE funds were also to showcase successful investments and exits for further fund-raising and the launch of new funds."