MUMBAI : The crash in stock prices caused by the covid-19 pandemic, which has prompted promoters to provide more collateral to lenders, has also started to impact private equity investors.
The benchmark BSE Sensex fell 23% in March as panic gripped markets worldwide. Several stocks saw a sharper decline of 50% or more, leading to breach of covenants in loans taken against them.
Private equity (PE) firms, which had availed loans against their listed holdings, have also been impacted by this turmoil. US private equity behemoth Carlyle Group is one of the PE funds that has seen a margin call on a loan that it took by pledging shares in PNB Housing Finance Ltd, following a sharp fall in PNB Housing’s shares, according to two people aware of