India: PE firm Creador exits Cholamandalam, sells remaining stake for $32m

Private equity firm Creador has exited investment in Cholamandalam Investment and Finance Co. Ltd by selling its remaining stake through a secondary market deal.

In the fresh share sale, the PE firm, focused on South and Southeast Asia, has sold 23,67,727 shares in Cholamandalam for Rs 219 crore ($32.4 million) last week.

As on March 2016, Creador owned 2.71 per cent stake in Murugappa Group‘s financing company.

Last month, it trimmed its holding in the company and sold over 1 per cent stake for Rs 154 crore.

Creador is estimated to have pocketed around Rs 530 crore on its four-year-old investment, generating around 5x returns in local currency terms.

Founded in 1978, Chennai-based Cholamandalam Investment (formerly Cholamandalam DBS Finance Ltd) provides financial services to small and medium sized companies. It offers loans for vehicle finance, home equity, corporate finance, stock broking services. It is mainly focussed on rural and semi-urban sector.

Multiples Alternative Asset Management – which had invested in Cholamandalam along with Creador back in 2012 – had fully exited the finance firm last year.

The other investors in the company include Norwest Venture Partners, IFC, Apax Partners and WestBridge Capital.

Shares of Cholamandalam closed at Rs 929.45 each, up 0.02 per cent in a strong Mumbai market on Thursday.

Creador is founded and headed by former ChrysCapital managing director Brahmal Vasudevan. This is the second exit by the PE firm from its Indian portfolio. Last year in January, the company sold its entire stake in housing finance company Repco Home Finance Ltd.

The other Indian portfolio companies of Creador include Somany Ceramics, PC Jeweller, Vectus Industries and Ashiana Housing.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.