MUMBAI: Many private equity (PE) players have preferred to ‘wait and watch’, with the stock market continuing to fall.
This is largely because of higher valuations that most of the entrepreneurs are still demanding. According to PE investors, companies, which missed out due to high valuations, are back in demand.
“Last year, we had identified good companies, but valuations were on the higher side. But many companies have realised that the market scenario has changed. They are coming back to us,” said Axis Holdings co-founder Kuntal Shah.
Mr Shah was speaking at VC Circle Growth Capital Forum held in Pune on Friday. He said value has started emerging in some companies. However, one has to be cautious right now.
LightSpeed Venture Partners MD Srini Vudayagiri said he expected there might not be the same growth in investments as witnessed in the past two years, but many deals would be closed this year. This is because large amount of money raised last year was still unparked.
This is largely because of higher valuations that most of the entrepreneurs are still demanding. According to PE investors, companies, which missed out due to high valuations, are back in demand.
“Last year, we had identified good companies, but valuations were on the higher side. But many companies have realised that the market scenario has changed. They are coming back to us,” said Axis Holdings co-founder Kuntal Shah.
Mr Shah was speaking at VC Circle Growth Capital Forum held in Pune on Friday. He said value has started emerging in some companies. However, one has to be cautious right now.
LightSpeed Venture Partners MD Srini Vudayagiri said he expected there might not be the same growth in investments as witnessed in the past two years, but many deals would be closed this year. This is because large amount of money raised last year was still unparked.
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