Equity

India witnessed a steep decline in private equity (PE) and venture capital (VC) investments in May 2025, totaling just USD 2.4 billion—a sharp 68% drop from the same period last year and 53% lower than April 2025 levels. A confluence of global macroeconomic uncertainty, geopolitical tensions, and valuation mismatches has dampened investor sentiment. However, resilient domestic indicators such as buoyant GST collections, a strengthening rupee, and prospects of monetary easing provide grounds for cautious optimism.

Knowledge Realty Trust (KRT), a Real Estate Investment Trust jointly backed by Sattva Group and global private equity major Blackstone, has raised Rs 1,400 crore in a pre-IPO round as it prepares to launch what could be India's largest REIT listing. The REIT, with a Gross Asset Value of approximately Rs 60,000 crore, aims to raise Rs 6,200 crore through its public issue. KRT's extensive portfolio spans 48 million square feet across six cities, making it the most geographically diversified office REIT in the country.

Mumbai-based private equity firm True North has fully exited its investment in Zydus Wellness, selling its remaining 7.27% stake for Rs. 879 crore via a block deal on the National Stock Exchange. The stake was acquired by PPFAS Mutual Fund, reflecting growing institutional interest in the consumer health segment. Separately, TVS Motor Company increased its holding in TVS Supply Chain Solutions from 4.37% to 5.26% in a Rs. 57 crore transaction, purchasing shares offloaded by NBFC Authum Investment & Infrastructure.

In a move aimed at energizing India’s mid-market enterprise ecosystem, the International Finance Corporation (IFC), part of the World Bank Group, has pledged an equity investment of USD 60 million (approximately Rs. 510 crore) in Motilal Oswal Alternates’ latest private equity vehicle. The investment, targeting high-growth firms in sectors such as consumer, financial services, manufacturing, and life sciences, underscores a broader strategy to drive inclusive development, foster job creation, and bridge funding gaps in underpenetrated regions across India.

Private equity firm TA Associates has exited its stake in AU Small Finance Bank (AU SFB) by selling 1.26% of its holdings for Rs 714 crore in an open market transaction. The sale involved 93.90 lakh shares, disposed of at an average price of Rs 760.07 per share. The deal marks a significant move in the private equity firm’s strategy, as it completely divests its position in the Jaipur-based bank. Meanwhile, in a separate transaction, Morgan Stanley Asia (Singapore) also sold shares in Bajaj Finserv for Rs 25 crore. This article explores the implications of these strategic divestments.

India’s capital markets are poised for a significant regulatory transformation as the Securities and Exchange Board of India (SEBI) prepares to issue formal directions this month on the standardized scheduling of equity derivatives expiries. Following a public consultation, the regulator is considering aligning all expiries across exchanges to either Tuesday or Thursday. This move aims to streamline market operations and reduce systemic risk.

Private equity major Norwest spearheads a Rs 1,465 crore investment in Hyderabad-based NBFC IKF Finance, aiming to expand financial access for underserved sectors through technology and strategic growth initiatives.

After two years of contraction, India's private equity and venture capital (PE-VC) investments have rebounded, reaching USD 43 billion in 2024. This marks a 9% growth from the previous year, driven by strong performance in venture capital and growth investments. While private equity remained stable at USD 29 billion, buyouts gained traction, reflecting a shift toward securing control in high-quality assets. The outlook for 2025 remains cautiously optimistic, bolstered by strong macroeconomic fundamentals and strategic policy measures.

The National Stock Exchange of India (NSE), the country’s largest equity trading platform, reported a robust 47% year-on-year increase in net profit for the fiscal year ending March 2025, reaching Rs. 12,188 crore. This performance was achieved despite a 13% decline in quarterly revenues for Q4, which stood at Rs. 4,397 crore. The exchange’s board declared a final dividend of Rs. 35 per share, including a one-time special payout. NSE’s tax contributions crossed Rs. 59,000 crore, with the cash and derivatives segments jointly generating significant securities transaction tax revenues.

India’s equity markets have seen a notable influx of foreign investment, with Rs 17,425 crore flowing in last week alone. This surge in Foreign Portfolio Investment (FPI) comes on the back of favorable global conditions, including stable US market performance, an expected pause in US interest rate hikes, and a weaker dollar. Domestically, India's strong growth prospects, easing inflation, and positive monsoon forecasts have further attracted foreign investors.