Mumbai; May 19, 2016
IDFC Private Equity completes 27th exit out of 41 investments, through IPO in Parag Milk Foods; realises Rs.180 crores at an IRR of 21%
May 19, 2016, Mumbai: IDFC Alternatives, one of the largest multi-asset class fund managers, with over USD 3.4 billion under management, has concluded a partial exit in its private equity fund (IDFC PE) with the IPO of Parag Milk Food Limited (“Parag”). IDFC PE had invested Rs 155 crore in Parag three years ago and is expected to receive over Rs 180 crores for its shares tendered in the Offer for Sale. This will result in a cash multiple of ~2x and an IRR of 21%. Post listing IDFC PE will continue to hold a 7% stake in Parag. The stock closed the day at Rs 248/share, 15% above its allotment price and resulting in listing gains of over 22% on day 1 to retail investors.
Speaking on the occasion, Girish Nadkarni, Partner, IDFC Alternatives – Private Equity, commented “Parag Milk Foods and Devendra Shah are fine examples of the kind of companies and entrepreneurs IDFC Alternatives likes to partner with. Mr Shah, is a passionate and visionary entrepreneur who has built the company into a leading branded consumer foods company. We are extremely pleased with the 2.5x growth of the company since our investment and continue to hold a significant amount of our investment as we believe in the long term prospects of the company.”
With this IPO, IDFC PE has concluded 27 exits out of 41 investments made so far. In the last 12 months alone, IDFC PE has concluded four exits realising Rs 942 crores at a 2x-4x multiple of cost (MOC). Apart from Parag Milk Foods, these include the sale of controlling stakes in Green Infra and Viom Networks to international strategic investors Sembcorp and American Tower respectively, a complete exit in Maharashtra Natural Gas (MNGL) and a partial exit in Staragri to Temasek. Overall, since inception IDFC PE has realised over USD 850 million from its 27 exits. Parag Milk Foods is part of IDFC’s “consumption” theme from its third private equity fund. The consumer sector will continue to be a core focus area for IDFC PE for its next fund alongside food and agri-businesses, healthcare, education, telecom, media and entertainment.
About IDFC Alternatives Limited:
IDFC Alternatives Ltd (“IDFC Alternatives”) is a 100% subsidiary of IDFC and is an advisor and investment manager of IDFC sponsored funds across private equity, infrastructure and real estate. IDFC Alternatives is one of India’s largest multi-asset class fund managers with assets under management of approximately Rs.17,000 crores. IDFC Alternatives is active across three key asset classes: Private Equity, Infrastructure and Real Estate and has over 60 professionals based out of Mumbai, Delhi and Singapore.
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