Arcapita Private Equity, a Bahrain-headquartered investment firm, is looking to sell its stake in privately held Polygel Industries Pvt Ltd., a company specialising in manufacturing of cable gels, atleast two sources briefed with the matter told VCCircle.
The private equity firm has appointed JM Financial as a banker for the same, sources added.
In June 2008, Arcapita Private Equity acquired 49 per cent stake in Mumbai-based Polygel Industries for $16 million.
An email sent to Ranjeev Bhatia, MD, Middle East and India, Arcapita Private Equity for a comment did not elicit any response till the time of writing this article.
Polygel Industries (formerly Polygel Technologies) is a 15-year old chemical manufacturing company that develops products for consumer and diverse industrial applications like telecom cables, surface coatings, synthetic fibres, engineering plastics and automobile engineering industries.
According to VCCedge, the financial research platform of VCCircle, the company had revenues of about Rs 93 crore last fiscal and was making losses.
The proposed exit comes close on the heels of Arcapita selling stake in Medplus, one of its other Indian portfolio company. In April last year, the investment firm announced that it has sold its stake in pharma wholesale firm Medplus Health Services Ltd to a consortium of private equity investors- Mount Kellett Capital Management, TVS Capital Funds Ltd and India Venture Advisors. The new investors acquired the 34.2 per cent stake held by Arcapita in the company for $90 million, valuing it at $263 million.
Arcapita had total assets of $3.7 billion as of June 30, 2011 with recurring income and management fees pegged at $203.5 million. After a lengthy period in which economic conditions stifled the opportunities for exits from within the banks’ investment portfolio, Arcapita completed seven full and partial exits during the year(2010-11), in the process returning approximately $1 billion to its parent and its investors, it said.