TPG-Axon, a $14 billion hedge fund partially owned by the private-equity firm TPG, has sold its complete equity stake in Mahindra & Mahindra Financial Services. The fund has sold its 7.22% stake, or 7 million shares in open market for a total sum of Rs 184.21
crore on Thursday. The fund exited its stake through two bulk deals, one on National Stock Exchange and the other on the Bombay Stock Exchange. The fund is taking a haircut on its investment as it had originally picked up the stake for Rs 266 crore.
TPG-Axon made the investment in February 2008 along with Standard Chartered Private Equity (SCPE). The shares have been sold at a price Rs 263 per share, which is at a discount to TPG-Axon’s subscription price of Rs 380 per share. Though all the buyers of the stake are not known, one of the buyers was Singapore-based hedge fund Treeline Asia.
Another investor in M&M Financial Services is ChrysCapital, who invested in the company in 2006. Both ChrysCapital and SCPE have upped their stake in auto
finance firm before the markets recovered.
Part of Mahindra Group, M&M Financial Services is a non-banking finance company focused on the rural and semi-urban sector. It provides loans for utility vehicles, tractors and cars.