Phi Capital exits Minda Corp, sells stake to institutional investors

Fund realises net consideration of Rs 329 cr at a trailing EV/EBITDA

Minda Corp set to focus on organic growth after 15.7% Pricol buy

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Dev Chatterjee Mumbai

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Yet another fund has exited its investment in India to take advantage of a buoyant stock market. Phi Capital Growth Fund-I (PCGF-I) has sold its entire stake in Minda Corporation to a consortium of institutional investors.

Phi Capital realised a net consideration of Rs 329 crore ($40 million) at a trailing EV/EBITDA (enterprise valuation to earnings before interest, taxes, depreciation and amortisation) multiple of 15.5 times, said a banking source.

Phi Capital had initially invested Rs 83 crore as primary funding, as per guidelines by the Securities and Exchange Board of India (Sebi). Phi Capital is run by a team of business transformation experts who started with the turnaround of the iconic Royal Enfield motorcycle in 2005.

The investment in Minda Corporation resulted in a multiple of invested capital of four times and an internal rate of return of approximately 69 per cent. Investors' recognition of Minda's operational performance and future outlook facilitated a curated stake sale to high-quality institutional investors, bankers said.

The proceeds of the sale will be distributed to investors in the coming weeks, propelling the fund's DPI (Distribution to Paid-in Capital) beyond 0.9 times. This exit marks Phi Capital's second such sale after a previous partial exit in Krsnaa Diagnostics.

First Published: Aug 15 2023 | 12:17 PM IST

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