PE funds plan to pump in $100 billion in India's distressed assets market

The distressed assets market in the country is turning out to be big with private equity (PE) funds planning to pump in nearly $100 billion. It is expected to help companies pare debt, given the considerable leverage at certain entities today even as it is to provide growth capital. An indicator of this interest is seen in the secondary market trading in distressed loans.

Between FY17 and FY19, the share of security receipts (SRs) held by institutional investors grew to 58 per cent from 1 per cent, and the share of asset reconstruction companies (ARCs) to 33 per cent from