OIJIF is very proud to be associated with its portfolio company Senco Gold and Diamonds Ltd. which had a stellar listing on July 14th, 2023. Suvankar Sen is a young intrepid entrepreneur who made this stupendous listing happen. The INR 405 Crores IPO generated huge investor interest and received 77x subscription overall and QIB portion was oversubscribed 190x. Senco Gold is a leading gold Jewellery chain in East India and will be the 3rd largest listed Jewellery company in India. It has 136 showrooms in 96 cities and towns across 13 states in India. OIJIF invested in Senco in April 2022.
OIJIF’s IPO streak continues with Senco Gold listing
14 July, 2023
This is second listing of a OIJIF portfolio company in quick succession, another portfolio company Divgi Torqtransfer had a successful listing in March 2023 and has delivered stellar returns to its investors and OIJIF. Listing of multiple portfolio companies in a difficult IPO market demonstrates capabilities of the fund in finding successful exits. Two more portfolio companies of OIJIF are looking to launch an IPO over next 12 months. OIJIF is also in process of raising its 3rd fund.
OIJIF’s stellar partial exit in Divgi’s IPO
14 March, 2023
Oman India Joint Investment Fund (OIJIF), a mid-market private equity firm that has raised two funds, has tweaked its plan to harvest money from a nearly five-year-old portfolio company after making three other exit moves over the recent past. OIJIF is seeking to make a partial exit from Divgi Torqtransfer Systems via the company’s proposed initial public offering. The PE firm was looking to sell 1.75 million shares of Divgi when it filed its documents for the IPO last September. It has now revised its plan to sell 2.25 million shares that may fetch around Rs 133 crore. In the process, the firm will take out more than its principal investment amount.
OIJIF had backed the automotive component supplier in 2018 and is estimated to have shelled out around Rs 100 crore. It would be looking at a multi-bagger from the partial exit, with a multiple of invested capital (MOIC) of 3.5x.
It would realise an internal rate of return (IRR), or annualised return, of around 28-30%. This is in line with the IRR of 20%-plus that PE and VC firms chase in India. OIJIF’s remaining stake would be worth Rs 220 crore at the upper end of the price band of Rs 560-590 per share. The PE firm has offered to sell over a third of its 21.7% holding in the company.
The company’s revenue rose almost 50% in the last two years to Rs 234 crore and net profit grew around 64% to Rs 46 crore in the year ended March 31, 2022.
OIJIF is also looking to harvest money from another IPO-bound company, Capital Small Finance Bank. It had earlier made a partial exit from PVC pipe manufacturer Prince Pipes and Fittings Ltd and signed off from its investment in Data Patterns via a secondary PE deal. Last year, it invested in Senco Gold in a pre-IPO transaction.
Divgi aims to use the proceeds of the fresh issue to fund its capital expenditure requirements for buying equipment and machinery, besides general corporate purposes. The share sale is the first mainboard IPO in two months. Its anchor allotment will begin on February 28. The issue will close on March 3.
Source – VCCircle