GIC buys into Dhanuka Agritech; IIFL fund trims Nazara stake with 3x gains

 GIC buys into Dhanuka Agritech; IIFL fund trims Nazara stake with 3x gains

Singapore sovereign wealth fund GIC, one of the largest international institutional investors in the Indian stock market, has picked up a 4.2% stake in Gurugram-based agrochemicals company Dhanuka Agritech.

GIC invested around Rs 166 crore ($22 million) to buy the stake from the company’s promoters on Wednesday. The promoters’ holding in the company, which was at the maximum permitted level of 75%, declined in the process.

Publicly listed companies in India are required to maintain at least 25% minimum public float as per local capital markets regulations.

Dhanuka Agritech previously counted mid-market private equity firm Lighthouse as an investor. It recorded a sharp 54% jump in profits for the year ended March 2021 to Rs 211 crore. Revenue rose to Rs 1,387 crore from Rs 1,120 crore. The firm has factories in Rajasthan, Gujarat and Jammu and Kashmir. Its R&D centre is located at Gurugram.

Nazara

IIFL Special Opportunities Fund, an alternative investment fund managed by financial services company IIFL Wealth Management, has trimmed its stake in digital gaming firm Nazara, beating benchmark returns in the process.

The fund had sold nearly three-quarters of its original stake in Nazara through the company’s IPO in March, making twice what it had invested.

On Wednesday, it divested nearly a third of its remaining stake for Rs 106 crore ($14.5 million). A bulk of this was picked up by Norwegian sovereign fund Government Pension Fund Global.

The fund, which makes late-stage private equity and pre-IPO investments, had invested about Rs 335 crore for a 19.87% stake in Nazara in late 2017. It fetched about Rs 485 crore by selling a 14.41% stake in the IPO, hitting benchmark returns. Its remaining stake is worth Rs 244 crore.

Overall, the fund is making a three-fold gain on its investment. With the latest tranche sold at a higher price, the fund’s returns to date are close to the upper end of the 20-30% annualised returns that PE-VC funds aim for, as per The Capital Quest’s estimates.

*This article has been modified to update the name of the firm that manages the IIFL fund.

The Capital Quest