Private Equity Investors are selling large stakes in listed entities and cashing in on huge profits
Private Equity Investors are selling large stakes in listed entities and cashing in on huge profits
In most cases the size of secondary sale through the ‘offer for sale’ mechanism is many times the original issue.
This ensures two things going forward. The first is the fact that the PE has disposable funds to re-invest in other businesses and companies in the country, and second that the stock is absorbed by other financial institutions whether they are domestic or foreign quite easily.
Many promoters have also used the opportunity to cash out and take advantage of the current situation where markets seem to absorb any off-loading of shares.
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