Private equity investors are continuing to cash in on their PIPE (private investment in public equity) deals as markets hit new highs. Private equity major ChrysCapital and AIM-listed PE firm Trinity Capital have sold significant stakes in portfolio companies through open markets deals worth Rs 390 crore on Friday. ChrysCap sold half its remaining stake in auto-finance firm Mahindra & Mahindra Financial Services for Rs 225.7 crore on BSE and NSE. Trinity Capital continued to exit SKIL Infrastructure-owned Pipavav Shipyard by selling a 2.85% stake for Rs 164.3 crore.
Till date this year (excluding Friday’s deals), private equity firms have sold stakes worth $768 million through 53 open markets deals, according to VCCEdge.
ChrysCap held around 9.9% stake in M&M Financial Services as of June 30 and sold stake worth Rs 199 crore last month. ChrysCap is a pre-IPO investor of the firm that went public in March ’06 with an issue price of Rs 200. Bulk of its holding was, however, purchased gradually in the open market at a price range of Rs 250-300 per share. ChrysCap has also sold its entire 9% holding in another consumer finance firm Bajaj Auto Finance in the open market for around Rs 241 crore.
M&M Financial Services, a non-banking finance company of Mahindra Group, focuses on the rural and semi-urban sector for providing loans for utility vehicles, tractors and cars. The share price of the firm slipped by 5.56% to close at Rs 654.40 on Friday.
Pipavav Shipyard has also seen PE investors exiting as the lock-in period expired earlier this month. In the recent round, Trinity Capital sold most of its remaining 4% stake (still has little over 1%). The shares were sold at Rs 86.5 per unit, against the acquisition price of Rs 25 per share.
Earlier this month Trinity also sold stake worth Rs 58 crore, besides tendering shares worth Rs 115 crore during the open offer in July this year (which was an exception to lock-in). Trinity had invested a total sum of Rs 115 crore for a 6.9% stake.
The share price of Pipavav rose sharply on Friday closing at Rs 92.70, up by more than 10%.