AIM-listed Trikona Trinity Capital has sold almost two-thirds of its three-year-old investment (bought as a pre-IPO transaction) in healthcare firm Fortis with a little over 11% ‘net’ returns. The investment firm has a scheduled exit for September 2010 that means it could sell the remaining shares in the next five months.
Trinity Capital had invested in Fortis in two tranches (January-March 2007) a total of Rs 115 crore at Rs 143.75 a piece. It has sold 5.05 million shares of a total of 8 million shares that it bought three years ago at Rs 160, netting a total of around Rs 81 crore. Its remaining shares are worth Rs 47.5 crore.
This could one of the underperforming investments for Trinity Capital that aims at IRR of 25% in its investments. In the same period that it invested in Fortis, the 30-stock benchmark index Sensex rose 33%.
The part exit by Trikona Trinity comes even as Fortis is making significant overseas moves. Last month Fortis Healthcare announced the largest overseas acquisition by an Indian company in the healthcare sector, buying TPG Capital’s entire 23.9% stake in Singapore’s Parkway Holding Ltd for $686 million (Rs 3,119 crore), and created Asia’s largest healthcare firm.
This move was in line with similar inorganic expansion back home where Fortis acquired Greenfield Hospital Division of Wockhardt Hospitals that gave it ten hospitals of Wockhardt for Rs 909 crore in August this year. The acquisition was part-funded by a rights issue of Rs 997 crore, internal accrual and debt.