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Indian family offices step into pre-IPO placements to boost returns
Mint Premium says the shift is being driven by family offices’ ability to write larger cheques and perform deeper due diligence, including in deals tied to upcoming IPOs.
Indian family offices in India are increasingly participating in pre-IPO placements, positioning themselves as new takers ahead of large listings, according to a LiveMint Markets/Mint Premium article.
The piece points to recent examples, including PI Opportunities Fund, the investment vehicle of Azim Premji’s family office Premji Invest, and Alrox Enterprises, the family office of Sun Pharmaceutical’s promoters, joining SBI Funds Management’s pre-IPO round. Earlier in December, it says family offices of Azim Premji and Rakesh Jhunjhunwala invested as anchor investors ahead of the IPO of ICICI Prudential Asset Management Co.
The report also cites a Julius Baer note highlighting private-market deals involving family offices, including Patni Family Office’s investment in Bombay Shaving Co., which it says plans to go public within the next 18 to 24 months.
The article frames the trend as a move up the value chain, with family offices backing companies before they list rather than focusing only on public markets or funds. It attributes the appeal to deal ticket sizes that many high net worth or retail investors cannot match, as well as family offices’ ability to run the due diligence needed for larger, less liquid commitments.