Mumbai-based private equity firm TVS Capital has sold its 2.8 percent stake in DCB Bank, a commercial bank with a focus on rural lending to Indian farmers and agribusinesses.
The exit earned the fund an IRR in excess of 35 percent with a multiple of 2.7 times invested capital, according to a statement.
TVS acquired its stake following a share offer by Bombay-listed DCB Bank in 2012, which was priced at Rs 47.84 ($0.71, €0.64) per share. The firm invested through its TVS Shriram Growth Fund 1A, which has now returned 33% of all invested capital, according to the firm.
Tano Capital, a California-based private equity firm, and Wolfensohn Capital Partners, a New York-based private equity firm, invested alongside TVS Capital at the time of the share offer. Wolfensohn holds a 2.78 percent stake and Tano Capital retains a 3.72 percent stake in the bank, which has a network of 157 branches and 359 ATMs across India.
TVS manages Rs 1,100 Cr ($1.1bn, €985m) across its two funds, TVS Shriram Growth Fund 1A and Fund 1B, with stakes in a diverse range of agri, food and other businesses including Dunar Foods, a basmati rice processing company, Om Pizza’s & Eats, which holds franchisee rights in India for brands such as Papa John’s Pizza and Regen Powertech, an Indian wind turbine manufacturer.
In June this year the firm invested more than Rs 81 Cr ($81m, €72m) in The National Stock Exchange of India, the country’s largest trading exchange.