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ChrysCapital Nearly Exits ING Vysya Bank

30 December, 2009

Private equity major ChrysCapital has sold most of its stake in its five-year-old investment in ING Vysya Bank. The PE fund has sold 97% of its stake in the bank, pocketing around Rs 130 crore. 

As per VCCircle calculations, the private equity firm has made a profit of Rs 58 crore on its investment in ING Vysya Bank. The average cost of acquisition for shares in ING Vysya Bank is believed to be in the range of Rs 165-170 per share for ChrysCapital. ING Vysya Bank closed at Rs 303 per share on the National Stock Exchange, yesterday.

The capital returns appears to be modest when viewed against ChrysCap’s illustrious past where it has invested in multibaggers many of which it exited at the peak of bull run. A mail sent to a ChrysCap official seeking a confirmation on the development elicited no response.

Chryscap sold the shares in two main tranches – one on December 21 and the other yeserday. Some shares were sold to Carlson Fund Equity Asian Small Cap. As per the shareholding data available on the National Stock Exchange, Winterfall Limited, an entity belonging to ChrysCapital, held 4,487,935 shares in ING Vysya Bank at the end of September 30, 2009.

Chryscap had originally invested in ING Vysya Bank between September and December 2004. It hiked its holding considerably in the next six months (that included subscription to a very lucrative rights issue) and had been holding on to 4.4 million shares ever since.

It is estimated to have invested anywhere between Rs 70-80 crore in buying shares of the company from the open market. The average price of acquisition is somewhere in the range of Rs 160-180/share. But the stock never really outperformed and has just about managed to double in four years.

ING Vysya Bank Ltd is an entity formed with the coming together of erstwhile, Vysya Bank Ltd, and a global financial powerhouse, ING of Dutch origin, in October 2002.


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ChrysCapital Nearly Exits ING Vysya Bank

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