By Nesil Staney
BanyanTree, a Mauritius-based mid-market private equity (PE) firm, plans to exit its decade-long investment in Gujarat-based Rotomag Enertec, a manufacturer of DC motors, solar-powered pumps, and photovoltaic string inverters. The firm said it expects a multi-bagger return from the exit.
Over the past 18 months, BanyanTree accomplished highly successful exits from Popular Vehicles, where it gained 10 times the invested amount and GPT Healthcare, where it gained 13 times the invested amount. During this period, it also exited Nspira, the staffing company of Narayana Group, at 2.5 times and skin-care products maker Astaberry at 3 times. It also sold off Origami Cellulo to Indonesia’s APRIL Group at 3 times its investment.
On Monday, BanyanTree’s portfolio company, Mahaveer Finance, a Non-Banking Financial Company (NBFC) specialising in used commercial vehicle financing, raised fresh equity funding from Elevation Capital, another PE, with continued participation from BanyanTree.
Rotomag was founded in 1993. Rotomag’s group company Rotomotive Powerdrives India manufacture AC motors, gearboxes and drives for electric vehicles. It exports to more than 35 countries.
Founded in 2008, BanyanTree is focused on investing in mid-market companies in India, with more than $300 million raised across three funds. It invests growth capital for significant minority stakes. In select cases, it undertakes control transactions. The firm’s investor base includes sovereign wealth funds, fund-of-funds, development funds, and insurance companies.