US-headquartered private equity firm General Atlantic LLC has agreed to pick up a majority stake in Hyderabad-based share registry Karvy Computershare Pvt. Ltd.
The deal will see the exit of Australian share registry company Computershare Ltd and some other shareholders, General Atlantic said in a statement. The deal is subject to regulatory approvals.
The firm did not reveal the financial details of the transaction but people privy to the development said General Atlantic is paying around $240 million (Rs 1,529 crore) for an 83% stake.
Karvy Group founder C Parthasarathy will retain some stake and be chairman of the board.
“With the continued growth of the Indian asset management industry, there is significant opportunity for Karvy Computershare to support clients’ needs,” said C Parthasarathy, managing director of Karvy Computershare.
“India’s asset management and corporate shareholders' service sectors are poised for rapid growth, supported by secular trends,” said Sandeep Naik, managing director and head of India & Asia-Pacific at General Atlantic.
General Atlantic, which has been operating in India since 1999, invested over $2 billion in the Asia-Pacific region, including India, as of 31 December 2016.
The PE firm has 13 investment professionals in India and focusses on sectors including financial services, internet & technology, business services, retail, consumer and healthcare.
The firm’s investments in the country include Billdesk, CitiusTech, House of Anita Dongre, IIFL Wealth, Mu Sigma, National Stock Exchange and PNB Housing Finance.
In May this year, General Atlantic and private equity firms TPG Capital Inc formed a consortium to acquire a controlling stake in Fortis Healthcare Ltd and its subsidiary SRL Diagnostics Pvt. Ltd.
In December, the PE firm promoted Shantanu Rastogi as managing director for India and Asia Pacific (excluding China).
Karvy Computershare was started in 1995 as a joint venture between the Karvy Group and Computershare in 2004. The firm has over 90 million investor accounts for its clients, which include asset managers and Indian corporations. The company is also licensed by India’s Pension Fund Regulatory and Development Authority as the official Central Recordkeeping Agency for the National Pension Scheme.
In April 2014, Karvy Computershare signed a pact with KPMG Fakhro to acquire a majority stake in its affiliate, Bahrain Shares Registering Company WLL, for an undisclosed sum.
AZB & Partners and Shardul Amarchand Mangaldas & Co served as legal advisers to General Atlantic and Karvy Computershare, respectively. MAPE Advisory Group acted as financial adviser to Karvy Computershare.