BVG INDIA PLANS ₹1,000CRORE INITIAL PUBLIC OFFERING
Pune-based facility management company BVG India Ltd plans to raise up to ₹1,000 crore from an initial public offering (IPO), two people directly aware of the matter said.
The proposed offering is in the early stages of planning and BVG is in the process of hiring bankers for it, the persons cited above said on condition of anonymity.
“While it is certain that the IPO will be in the range of ₹1,000 crore, the other modalities are being worked out,” said the first person cited above. “The main reason for the IPO is to provide an exit to private equity fund 3i group, which currently owns 26% stake in the company,” the person added.
UK-based 3i Group Plc had bought a 27% stake in BVG from existing investor Kotak India Growth Fund I, a fund managed by the Kotak Private Equity Group. It also bought additional shares from the promoter family. Its total investment in the company was worth ₹200 crore.
Mint had reported in December 2015 that 3i was planning to exit BVG India through a secondary sale and had hired Kotak Mahindra Investment Bank to manage the sale, expected to be in the $80-100 million range.
“Given the response that the recent IPOs of similar facility management companies such as Quess Corp and TeamLease Services have received, both BVG India and 3i felt that IPO is best the option,” the first person said. “Apart from giving a complete exit to 3i, the company will use part of the IPO proceeds to fund buys,” the second person added.
An email sent to the 3i group was not answered until the time of going to press. BVG India CMD Hanumant Gaikwad could not be reached.