IL&FS PE, Franklin Templeton’s PE arm & Asia Mezzanine Capital exit SFO Technologies

IL&FS Investment Managers (IIML) or IL&FS Private Equity, Franklin Templeton's private equity arm Darby and Asia Mezzanine Capital Group have offloaded their equity stake in SFO Technologies, the flagship company of Kochi-based diversified business conglomerate NeST Group, to a promoter group entity, as per a disclosure note.

Financial details of the transaction were not shared but it believed the transaction was closed in December 2014 itself.

The three PE investors had together invested in SFO Technologies in 2011, partly through a fresh issue to help the company expand its manufacturing and design facilities in Cochin and Bangalore apart from enabling it to look at acquisitions in the US and Europe. The deal also involved a secondary component where India Value Fund exited its five-year-old investment.

SFO Technologies is one of the largest electronic manufacturing services (EMS) players in India focused on low volume, high mix products in emerging segments such as healthcare, automotive and industrial. It is believed to have a top-line of over Rs 1,000 crore.

Javad K Hassan and his brother N Jehangir–promoted NeST group of companies comprises over 20 firms employing over 4,000 people worldwide. The group has a strong presence in futuristic computer & communication technology areas like networking, fiber optics, RF & microwave and software.

NeST group has hardware and software facilities spread across Thiruvananthapuram, Kochi, Bengaluru and Mysore in India, apart from the Middle East, Europe and the US.

The other group companies include NeST Software, NeST Infratech, Nest Foods & Beverages Corp and NeST Institute of Fiber Optic Technology.

Bangalore-based mid-market investment bank o3 Capital acted as the exclusive financial advisor on the exit transaction. O3 had also advised SFO Technologies in 2011 when the company raised funds from the investors.

(Edited by Joby Puthuparampil Johnson)

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