PIPE deals in India: effect on market & operating performance in short & longer term

Abstract

PIPE, or private investment in public equity, investments are gaining traction in India as promoters of public companies are beginning to turn to private investors for capital infusions due to multiple reasons, including a depressed stock value which discourages a follow-on offering. These private investors are allotted shares in the target in an off-market transaction, which they can then trade on the open exchange subject to some restrictions. These investors can be funds such as private equity funds, sovereign wealth funds, other institutions, or even other corporations.