ChrysCapital, arguably India’s most successful private equity fund, is hitting the stock market trail again. As the capital markets valuations had crashed by around 40-50 per cent and the IT stocks were trading close to their all time lows, the Delhi-based private equity firm has decided there could not be a better time to cherry pick some erstwhile stock market darlings like Infosys and HCL Technologies stocks. Highly placed sources told VC Circle that ChrysCap, as it’s known in the investment circles, has picked up shares worth $100 million each in Infosys and HCL a couple of months ago.
As expected, ever since ChrysCap has picked up shares, Infosys scrip has appreciated about 25 per cent, the sources added. Infosys and HCL shares were dumped by the investors as rupee started appreciating against dollar affecting the margings of the IT companies. As the outlook for the IT companies were getting bleak, that was the time ChrysCap entered the market with their cherry picking strategy.
ChrysCapital manages funds worth $2.25 billion over five funds and is considered one of the most successful funds in India with investments in companies like Spectramind (sold to Wipro), IVRCL (public market exit), Mphasis (public market exit) and Yes Bank delivering high returns for the fund.
Besides Infosys and HCL, ChrysCap had also recently bought stake in Amtek Auto from the secondary market. The fund has reportedly invested $80 million in Amtek Auto for a 7-8 per cent stake.