Malaysia-based private equity firm Creador has partially exited from Repco Home Finance, an India-based firm, it had invested in 2013. Creador generated a three-fold return on investment.
Creador exited Repco Home Finance through a bulk transaction on the Bombay Stock Exchange, selling 325,000 shares at INR 470 per share. The sale came up to INR 152.75 million ($2.5 million).
The exit strengthens Creador’s view on the financial services sector, which chief executive officer Brahmal Vasudevan said was an area the firm will focus more on, going forward.
Creador’s other financial services investments are Cholamandalam Investment & Finance Company, a pan-Indian composite financial services provider and BFI Finance in Indonesia.
Brahmal was quoted saying that the firm decided to exit earlier than its normal five-year cycle as Repco Home Finance was growing rapidly, making good margins.
The Chennai-based Repco Home Finance is the mortgage finance arm of Repco Bank, providing home loans to eight states and one union territory in and around southern India.
Creador had acquired 9.9% stake in Repco Home Finance from the Carlyle Group for INR 724 million ($12 million) in February last year.
The Carlyle Group, which had 49.7% in Repco Home Finance, made 3x to 4x its investment through secondary transactions.
It had sold over 23% to both Creador and Wolfensohn (which took 13%), and 2.78% to Antique Broking and Shardul Securities, raising a total of INR1.9 billion ($31 million).
After Repco Home and Finance made its initial public offering in March 2013, Carlyle made a full exit in June via the open market, for INR4.72 billion ($77 million).
Wolfensohn also made a full exit in April this year, making a 2x return.
(Edited by Yamini Dhall)