India: PE firm Creador exits Somany Ceramics with 5.3X returns

Southeast Asia and India-focused private equity (PE) firm Creador Capital Group has marked its second full exit through its second vehicle – Creador II.

In the latest deal, the PE firm has sold its remaining 10.3 per cent stake in its three-year-old investment Somany Ceramics Ltd. In the process, Creador received a 5.3x return and an IRR of 77 per cent in rupee terms (5x return and an IRR of 74 per cent in dollar terms), according to a statement on Thursday.

In the fresh tranche, the stake was sold to marquee domestic institutional investors for a total sum of Rs 326 crore ($50.4 million).

Creador II had invested Rs 62.4 crore in the company in February 2014 for a 13.6 per cent stake. It was Creador’s second investment from its second fund.

Somany manufactures ceramic, polished vitrified tiles (PVT) and glazed vitrified tiles (GVT) through own, JV, and outsourced plants. The company has around 200 exclusive showrooms. It also forayed into sanitaryware and bath fitting products a few years ago.

Somany Ceramics’ scrip last traded at Rs 694.15, up 1.44 per cent on BSE in a strong Mumbai market on Thursday.

Creador had closed its fundraising in 2014 with $330 million for its second fund. Currently, the PE firm invests through its $415 million third fund.

Last month, Creador II exited its investment in GHL System Berhad, a leading payment service provider in Southeast Asia. Prior to that, Creador I had exited Cholamandalam Investment & Finance Company Ltd, a leading non-banking finance company (NBFC) in India in June 2016; OldTown White Coffee, a leading Malaysian restaurant chain in April 2013; and Repco Home Finance Ltd, a housing finance company promoted by Repco Bank in October 2014.

Also Read: Malaysia: Actis acquires major stake in GHL Systems with $65.5m deal, Creador exits

Creador looking at creating digital fund, says Cyril Noerhadi

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.