Mid-East-based alternative investment firm Evolvence Capital has commenced part exit from its four-and-half-year-old investment in Chennai-based Consolidated Construction Consortium Ltd (CCCL). Evolvence that co-invested with UTI Ventures (now called Ascent Capital) in March 2006, one and half years before the IPO of CCCL, is estimated to have encashed a fifth of its shares with 2.8x multiple on its investment.
Evolvence had put in around $10 million at a price of Rs 360 a piece. After accounting for bonus and stock split, the cost of acquisition works out to be around Rs 29. Evolvence sold around 2.4 million shares of 12.9 million that it held as of June 30, at a price of Rs 80. It held 6.98% stake as of June 30 and, after the stake sale, continues to own around 5.6%.
CCL ended last fiscal with revenues of Rs 1,976 crore with net profit of Rs 91 crore. It is involved in projects related to industrial, commercial, residential and infrastructure space.
Evolvence had invested in CCCL out of its Evolvence India Fund (EIF) that had its final close in July 2007 and has a total corpus of $250 million (as per Evolvence website). It has a hybrid strategy with the mandate to invest 60% of its allocation in Indian private equity funds and the remaining 40% towards co-investments and direct investments. Besides CCCL, Dubai-based EIF has also invested in Emaar MGF Land Ltd.
Its portfolio consists of funds covering early growth to late stage including pre-IPOs to small & mid-sized buyout fund. In its co-investments, EIF targets mid-sized companies which are currently in an expansionary stage. The fund headed by Ajit Kumar has committed to 10 underlying funds and executed eight co-investments.
Evolvence Capital is reportedly also looking to raise $400 million under its third India-focused fund under EIF II.
Its co-investor has apparently managed its investment much better than Evolvence. UTI Ventures that originally invested Rs 54 crore in CCCL at the same issue price of Rs 360 per share that worked out to around Rs 144 post bonus issue, had part exited with a multibagger soon after the stock made its debut on Indian bourses and the markets were close to their peaks. UTI Ventures sold around 4.9% stake in October 2007 encashing over Rs 140 crore at an average price of around Rs 780-790 or over five times cost of purchase.
UTI Ventures continues to hold 7.82% stake since its first partial exit almost at the peak of the market. Its remaining shares are valued at Rs 115 crore.