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.

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