Zephyr Peacock India Fund I has made a partial exit from its investment in Time Technoplast, a firm specialising in polymer products. The PE fund sold half of its 3.35% stake in a bulk deal for approximately Rs 16 crore on the Bombay Stock Exchange (BSE) on Tuesday. Zephyr Peacock, which focuses on the Indian small and medium enterprises (SME), has made a 1.65x return on the investment it made in early 2007.
The exit would provide some liquidity to the investors of Zephyr Peacock. "We have continued faith in the company and look forward to being a part of its future growth with our remaining stake," said Kartik Parija, managing director of Zephyr Peacock. Parija is also part of the board of directors of Time Technoplast.
Zephyr Peacock invested Rs 19.2 crore in Time Technoplast, picking up the shares for Rs 275 a piece. The company went for a stock split of 1:10 last year, making its per share acquisition price currently at Rs 27.5. The firm has sold half its stake at Rs 45.45 per share. Its existing shareholding is worth more than Rs 17 crore as per Thursday's closing price of Rs 49.
Time Technoplast reported revenues of Rs 790 crore with a net profit of Rs 76.2 crore for FY09. Motilal Oswal Venture Capital has also invested in Time through its India Business Excellence Fund and presently holds a 1.54% stake.
Zephyr Peacock, based out of Bangalore and New York, has made four investments till now - Time Technoplast (polymer products firm), WLC India (a vocational training provider), Maxop Engineering (die-casting firm) and Miles Software (a financial services software firm). It is part of Zephyr Management, which has $1.4 billion under management in funds across emerging markets.