Asian healthcare private equity firm Quadria Capital has invested Rs 500 crore ($67 million) in diaper maker Nobel Hygiene Pvt. Ltd, paving the exit of two PE firms.
The deal involved a combination of a primary capital infusion and secondary share purchases from Nobel Hygiene’s early backers CLSA Capital Partners and Indian mid-market PE firm Access Asset Managers.
Separately, consumer-focused venture capital firm Sixth Sense Ventures has invested Rs 95 crore in Nobel Hygiene.
Nilesh Mehta, co-founder and managing partner at Access PE, said the Access India Fund and its co-investors sold their entire stake in Nobel Hygiene in the transaction.
The PE firm achieved eight-fold returns on its investment with an internal rate of return (IRR) of 28%, he said.
This is in line with the 20-30% annualised return that PE and venture capital firms chase in India.
Access had invested in Nobel in 2013, when it was a Rs 112 crore company and had a leadership position in the adult diaper segment with its brand “Friends”. During Access PE’s investment period, Nobel consolidated its leadership in the adult diaper segment and entered the baby diapers vertical with a five-fold growth in revenue, Mehta said.
Nobel Hygiene now has three major brands in the diaper segment—Friends, Snuggy and Teddyy.
Mehta also said that Nobel Hygiene is Access PE’s second exit during this quarter. In April, the PE firm had exited its five-old investment in procurement analytics services provider Beroe Consulting. The PE firm achieved a three-fold return on its investment with an IRR of 26%, he said.
Quadria Capital manages two PE funds. It had raised $300 million for its maiden vehicle, though the total investment in its portfolio companies went up to $420 million with co-investments from its limited partners. It hit the final close of its second healthcare-focused fund at $595 million in March last year.