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Catamaran exits power equipment maker TD Power Systems with around 26% IRR

09 October, 2014

Infosys’ chairman emeritus NR Narayana Murthy’s private investment firm Catamaran Ventures has exited its less than two-year-old investment in Bangalore-based TD Power Systems Ltd via an open market share sale on Wednesday.

The firm held 1.2 per cent stake in the company which it had picked up in the first quarter of 2013. Catamaran had invested approximately Rs 9.15 crore in the power equipment maker last year.

It has garnered a return of a little over 1.4x and estimated IRR of just over 26 per cent on its one-and-a-half-year-old investment. Of the 4.06 lakh equity shares sold by the firm for Rs 319 per piece, around half was picked by HDFC Mutual Fund.

An email query sent to Catamaran Ventures’ chief Arjun Narayanswamy elicited an automated response that he is unavailable for a comment.

TD Power, which went public in 2011, is backed by investors such as Baring India Private Equity Fund, Sequoia Capital and India Value Fund.

Shares of TD Power Systems closed at Rs 333.4 a unit, up 4.22 per cent on the BSE a day after Catamaran’s exit, in a strong Mumbai market on Thursday.

For Catamaran, this marks another portfolio exit in a quick churn. Recently it had exited its one-year-old investment in bearing manufacturer NRB Bearings with 3.5x returns. The firm sold its entire stake in the company via open market for Rs 17.2 crore.

Going by the current run up in the stock market post general elections in May this year, many PE and VC firms have pounced on the opportunity to score exits generating neat profit. PE firm Apax Partners, WestBridge Capital, Multiples PE and Wayzata among others have pressed on the part or full exit button on their not too old investments.

(Edited by Joby Puthuparampil Johnson)


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Catamaran exits power equipment maker TD Power Systems with around 26% IRR

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