Piramal ranks among top blockbuster exits, keeps up with telecom theme - Times of India

The author has posted comments on this articleReeba Zachariah, TNN | Apr 11, 2014, 04.05PM IST

MUMBAI: Is Ajay Piramal's $500 million gain from the Vodafone stake-sale the hottest exit story this summer? It certainly looks that way. Tons of sale transactions happen every year on Deal Street but only some shine all the way. The key takeaway from the Piramal transaction is that "a top quality asset ultimately sells at top dollar", says Rajiv Kochhar, founder & CEO, Avista Advisory, a boutique investment banking firm. In recent times, financial services, telecom and business process outsourcing sectors provided the biggest exit opportunities and made big bucks for the investors.

Here's a list of some of the blockbuster exits that created headlines.

Warburg Pincus-Bharti Airtel: In 1999, when the American private equity fund made a courtesy visit to Bharti Airtel, the latter hadn't even heard of Warburg Pincus. But that meeting acted as a catalyst for the fund to invest in the telecom company. Lady luck shone on the PE major: Si x years later the fund netted an eye-popping $1.83 billion from its $290 million investment. Even today, this deal remains a landmark in the history of private equity in India.

General Atlantic, Oak Hill-Genpact: The private equity majors scripted the biggest exit story in 2012, selling their 30% stake in Genpact for $1 billion. Eight years earlier, they had invested $500 million to take a combined stake of 60% in the company, which was started as the India-based computer services unit of General Electric.

Petronas-Cairn: Malaysian energy major Petronas sold its 14.9% stake in Cairn India for $2.1 billion, which was the largest block deal in the Indian capital market's history. In terms of value, it was over two-and-half times the size of the previous record of a $780-million block deal for DLF shares in 2009.

Carlyle-HDFC: In 2012, Carlyle made a neat kill when it sold its 5.22% stake in India's biggest mortgage financier, HDFC. According to Venture Intelligence, the Nasdaq-listed fund had invested $660 million in 2007 and exited the company for $1.11 billion.

ChrysCapital-HCL Tech: India-focused private equity fund ChrysCapital scored a multi-bagger when it sold its 2% stake in HCL Technologies for $500 million. The fund had invested $180 million for a 4% stake in India's fourth largest IT company. It had also made handsome gains from its investment in Infosys: Getting $400 million in 2010 from its 2008 investment of $175 million.

Actis, Sequoia-Paras Pharma: In 2006, the two private equity entities together invested $56 million in the Ahmedabad-based Paras Pharmaceuticals. Four years later, they exited the maker of Moov pain reliever and Krack foot cream at 10 times the value.

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