The IPO route of exit by a private equity (PE) player is seen as the most efficient way of exit, but in India, irrespective of a vibrant primary market, the number of exits through the IPO route is less compared to other exit options available. Data from Venture Intelligence shows in 2007, PE firms exited in 65 Companies, of which only 16 were through IPOs, while 2006 saw 19 exits through the IPO route from a total of 37 PE exits. The year 2005 saw 42 exits, but IPOs’ share was just 17. Experts attribute this to flexibility available to PE firms to exit through more lucrative routes than an IPO. Dhanraj Bhagat, partner, specialist advisory services, Grant Thornton, said, “While IPO exits may be less, many exited through strategic sales via the exchange after listing. They would have expected better returns post-listing. Also in the past few years, many Companies preferred strategic sales i.e. sale to financial investors, competition & joint venture partners, which is not possible in an IPO. Also, a presence of quality investors like PEs makes an issue more saleable. Many Companies in the past years opted to divest some stake during the IPO and some, post-listing.” Though PE firms exited 170 Companies since 2004, only 58 cases, or 34%, were through IPOs; the others took the M&A route or sold back shares to the promoters. The year 2007 saw 95 maiden share offers, while 2006 and 2005 saw 73 and 50 such offers, respectively.   more »