Sequoia Capital makes 8 times return in Manappuram capital
Posted Apr.23, 2010 in Banking, Financial Services
Sequoia Capital has sold its 11% stake in Manappuram General Finance & Leasing for Rs. 300 crores in open market.
About Sequoia Capital – Manappuram capital deal
A bulk of the shares were purchased through convertible preference shares at Rs 100 a piece. Sequoia later also invested in another group firm Manappuram Finance (Tamil Nadu) Limited, that eventually merged with Manappuram General Finance.
Post amalgamation, Sequoia held as much as 3.9 million shares and is believed to have sold all its shares, in one of the single largest PE exits in recent times. Although the company is yet to make disclosure of the same and details of share sale will be clear later in the evening, there was trading of as many as 4.2 million share of the firm at BSE alone against the two week average of 30,000.
The shares traded around between Rs 740 and 796 a piece on Friday, which means Sequoia would have netted close to 8x returns on its less than year-old-investment.
Other investors in Manappuram General Finance include Hudson Equity, a fund managed by India Equity Partners that co-invested with Sequoia in 2007. Thereafter the NBFC raised further rounds of investments from US-based private equity fund Granite Hill besides UK-based Alchemy Ashmore– a joint venture between Alchemy and Ashmore.
Services offered by Manappuram include deposits, gold and vehicle financing, forex and general and life insurance. It had also entered into an alliance with IDBI Fortis Life Insurance Company Ltd to provide wealth building and insurance products to customers in Kerala.
Source: VCCIRCLE