Tuesday, October 31, 2006

Citigroup Makes Partial Exit From Suzlon To Make Rs 801 Cr; Unsold Holding Worth Rs 1,800 Cr

This is one huge exit in the recent times. Citigroup Venture Capital International, the private equity arm of Citigroup, has sold a part of its holding in Suzlon Energy for Rs 801 crore ($178 million), reports The Economic Times . This includes Rs 185 crore ($41 million) it realised during the IPO of Suzlon Energy in 2005.

 CVCI's original investment in Suzlon is Rs 100 crore or $22.2 million (half of which was debt) which it made in 2004. It still holds shares worth Rs 1,800 crore. Add Rs 801 crore it realised from its partial exit, the total value of CVC's holding in Suzlon is Rs 2,600 crore ($577 million). This is 26 times the original investment.
Apparently, CVCI's Suzlon realisation could be the third most profitable exit in India. First, of course, is Warburg Pincus which made $1.6 billion from an investment of $300 million in Bharti Televentures. Then CVCI itself made approximately $600 million when it sold off its stake in i-flex to Oracle. Citigroup stayed invested for 12 years in i-flex. It's not clear how much was its original investment.

Read - CVC bags Rs 801 cr from part of Su

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