Nalanda Capital hikes stake in TTK Prestige to 3%, buys more from Cartica for $8M

Public market focused private equity firm Nalanda Capital through its affiliate Nalanda India Equity Fund Ltd, has picked another 1.37 per cent stake in kitchen appliances maker TTK Prestige, the flagship of southern India-based TT Krishnamachari group of companies, for Rs 48.2 crore ($7.8 million).

In this new transaction, the fund has acquired 1,59,661 shares at Rs 3,025 each.

The stake was picked through a market transaction where existing investor Cartica Capital sold shares just over a year after backing the firm through a mix of preferential allotment and share purchase from promoters and others. 

In June 2013, Cartica first agreed to invest Rs 106.5 crore in TTK Prestige though a preferential allotment. Simultaneously it raised its exposure in TTK Prestige by picking 3.08 per cent stake from the promoters through open market transaction.

It bought more shares thereafter raising its exposure and making it the single-largest private investment bet in the home appliances sector.

Recently, it sold a chunk of its stake for around Rs 86 crore.

Its remaining 1.5 per cent holding is worth around Rs 53 crore.

Cartica was set up in 2008 by former executives of IFC, the World Bank arm, and focuses on public companies. It manages money for large US pensions like Calpers and the State of Wisconsin Investment Board.

In India, Cartica has backed companies like Ratnakar Bank, Mahindra & Mahindra Financial Services and Page Industries.

Nalanda Capital had originally picked 1.5 per cent stake in TTK Prestige for invested Rs 47 crore from Columbia Acorn Trust. It later bought more shares and held 1.7 per cent as of December 31, 2014. With the latest deal it now owns over 3 per cent of the company.

A part of the TTK Group, which has interests in contraceptives, baby care and other products, TTK Prestige is one of the top small kitchen appliances firms in the country. It ended FY14 with revenues of Rs 1,294 crore and net profit of Rs 111.8 crore.

Shares of TTK Prestige last traded at Rs 3032.65 each, down 1.19 per cent on BSE in a strong Mumbai market on Monday.

(Edited by Joby Puthuparampil Johnson)

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