Singapore-based Nalanda Capital seems to have started encashing its investments made during the downturn. The PE firm, which held stake through Nalanda India Fund, has sold most of its stake in Chennai-based broadcaster Sun TV Network Ltd for Rs 286 crore on the Bombay Stock Exchange.
The funds sold 7.7 million shares, which accounts for nearly 2% stake, on Wednesday for a price of Rs 370 per share. This means returns of around 2.5x (2.5 times their investment) for Nalanda on its 14-month- old investment in Kalanithi Maran-owned Sun TV.
Nalanda picked up a 2.22% stake in Sun TV back in December 2008 with a total investment of between Rs 120-130 crore. A bulk of this stake came at a stock price of Rs 145 per share. Its remaining stake would be valued at Rs 37.3 crore at Sun TV’s closing price of Rs 370 today. The shares of the company were down by 8.44% today on account of block deals.
Nalanda Capital, founded by former Warburg Pincus managing director Pulak Prasad, raised a $400- million fund with a mandate to invest in listed Indian companies only. Prasad is known for leading Warburg’s investment in India’s largest mobile operator Bharti Airtel and still sits on its board. During the downturn, Nalanda picked up stakes in over half a dozen listed companies such as Mindtree, Mastek, Triveni Engineering, Page Industries etc. Its other investments include Vaibhav Gems and WNS.