PE funds exit out of old investments: Carlyle sells Repco Home Fin stake for Rs 471 cr
The market sentiments have changed post the Modinomics wave and the Private equity (PE) firms are using this buoyant market sentiment to exit their old investments via public market sales route. Over nine-fold returns were made by Carlyle Group when it made a full exit from Repco Home Finance, a housing finance company based in Chennai. This process took about over six and half years.
Carlye Group, a global private equity firm with assets under management of over $199 billion had invested nearly R108.57 crore in Repco Home Finance during 2007-09. Carlyle Asia Growth Fund picked up nearly 49.7% stake at an average buy price of R46.85 a piece.
On Thursday Carlyle Growth VI fund sold the entire stake for total consideration of Rs 471.43 crore. First Carlyle Growth VI fund held 17.74 % stake or nearly 11.03 million shares in the company (at the end of June 2014). This has given a good amount of cash to Carlyle to be reinvested in other projects. The transaction took place at a price of Rs 427.50 per share through a bulk deal on NSE.
Carlyle Group has been one of the most successful investors in India having made quite a few profitable exits on regular basis in last six months. This is the strategy of this PR firm and they always manage to exit in time. Carlyle had in first quarter of 2014 exited from Tirumala Milk Products and Cyberoam for $72 million and $ 70 million, respectively.
Source- The Financial Express
Carlyle, Carlyle Asia Growth Fund, Carlyle group, Creador, DSP Blackrock, First Carlyle Growth Fund, First Carlyle Growth VI, FT India Prima Fund, Jupiter India, Lactalis, Nomura India, Repco Home Fin, Repco Home Finance, Repco home finance Ltd, Shares, SmallCapWorld Fund, Tirumala Milk, Wolfensohn
