General Atlantic scores over 2x on $66M part exit from IndusInd Bank

Private equity firm General Atlantic has partially exited its three-year-old investment in Hindujas-promoted IndusInd Bank by selling around one-fourth of its total holding for Rs 397.8 crore ($65.5 million).

The PE firm sold 1.23 per cent stake on Wednesday. Post this it continues to hold 3.62 per cent stake in the bank which is valued at approximately Rs 1164.7 crore based on the current market price.

General Atlantic started to buy into IndusInd earlier in 2011, increasing its stake from 1.31 per cent in March 2011 to 1.69 per cent by June 2011 and then to 3.4 per cent in September that year. It ended with around 4.9 per cent stake.

It started acquiring shares when the scrip was trading at around Rs 220 a unit and kept on loading up in tranches at a time when its share price crept up to around Rs 300 each, through secondary market transactions.

On Wednesday it sold shares at Rs 612 each, thereby pocketing over 2x on its blended average cost of acquisition of shares.

IndusInd also counts Norwest Venture Partners and GIC, the sovereign wealth fund of Singapore, as investors.

(Edited by Joby Puthuparampil Johnson)

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