Citigroup Venture Capital(CVC) has sold almost half of its five and half year old investment in drug and chemical makers Jubilant Organosys with a 2x return since last October. Jubilant is also backed by others such as Henderson Capital and General Atlantic.

CVC had invested along with Henderson in December 2004 through a preferential allotment. It had picked around 5% for Rs 110 crore. After the stock split, its average cost of acquisition works out to Rs 165 a piece.

Last week, it sold a large chunk (1.1%) at around Rs 334.77, almost double that of its initial purchase cost. Incidentally, CVC had also sold some shares in September-December’09 quarter (as well as some since January’10) when prices were in the region of Rs 220-350 and it could have also sold around with the same returns after completing five years of investment period.

CVC has encashed around Rs 60 crore last week itself (in addition to what it sold since September’09). Its remaining stake of around 2.39% is valued at Rs 124 crore.

Jubilant that raised Rs 387 crore through a qualified institutional placement two weeks back, has been on the inorganic expansion path between 2005-08. It acquired US contract research organization Target Research Associates in 2005, and thereafter in quick succession also picked a majority stake in Belgium's Pharmaceutical Services Inc and US generic company Trigen Laboratories. In 2007 it acquired Hollister-Stier for $122.5 and went a step ahead by acquiring Canada’s Draxis Health for $255 million in April 2008.

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