PE Gen­eral At­lantic Buys 74% in Karvy Com­puter

STAKE SALE Aus­tralia’s Com­put­er­share said to be selling 50%, Karvy owner 24%

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

Mum­bai: Global pri­vate eq­uity fund Gen­eral At­lantic said on Friday that it has pur­chased a sig­nif­i­cant stake in In­dia’s largest share reg­istry com­pany Karvy Com­put­er­share. Al­though the com­pany did not dis­close the fi­nan­cial de­tails of the trans­ac­tion, sources said the fund has picked up around 74% stake in the com­pany for roughly .₹ 1,500 crore.

ET was the first to re­port on the pro­posed trans­ac­tion in its June 19 edi­tion.

Aus­tralian share reg­istry com­pany Com­put­er­share, which owns half the com­pany, will sell its en­tire stake, while In­dian part­ner and Karvy Group owner C Parthasarathy will sell around 24%, sources said.

Gen­eral At­lantic has bought the stake held by Aus­tralian part­ner Com­put­er­share and other share­hold­ers, the com­pany said in a re­lease on Friday.

“In­dia’s as­set man­age­ment and corporate share­hold­ers’ ser­vice sec­tors are poised for rapid growth and con­tin­ued de­vel­op­ment, sup­ported by a num­ber of com­pelling sec­u­lar trends,” said San­deep Naik, man­ag­ing di­rec­tor, Gen­eral At­lantic. “We be­lieve Karvy Com­put­er­share will re­main a part­ner of choice for In­dian as­set man­agers and cor­po­rates, given its ex­ten­sive ex­per­tise and mar­ket-lead­ing suite of ser­vices.” Karvy Com­put­er­share com­petes with CAMS, Link In­time, Big Share Ser­vices and In­te­grated En­ter­prises in the coun­try. The Na­tional Stock Ex­change pur­chased 45% stake in CAMS from global buy­out fund Ad­vent In­ter­na­tional in 2013.

“With the con­tin­ued growth of the In­dian as­set man­age­ment in­dus­try, there is sig­nif­i­cant op­por­tu­nity for Karvy Com­put­er­share to sup­port the ex­pand­ing needs of our clients through our tech-en­abled plat­form,” said C. Parthasarathy, Man­ag­ing Di­rec­tor of Karvy Com­put­er­share.

Founded in 1995 by Parthasarathy, Karvy Com­put­er­share is one of the largest share reg­istries ser­vic­ing over 90 mil­lion in­vestors’ ac­counts across 1,300 is­suers, in­clud­ing banks, pub­lic sec­tor units and mu­tual funds. Karvy em­ploys 4,000 peo­ple at 203 branches.

“When we ini­tially part­nered with Karvy Group to form Karvy Com­put­er­share in 2004, we had strong con­vic­tion about the growth po­ten­tial of the In­dian corporate and as­set man­age­ment sec­tors. Over the past 13 years, we have been de­lighted to wit­ness the im­pres­sive evo­lu­tion of th­ese sec­tors and to sup­port the com­pany,” said Stu­art Irv­ing, CEO of Com­put­er­share Lim­ited.

In its next phase of growth, Karvy Com­put­er­share will seek to ex­pand and en­hance its port­fo­lio of ser­vices to meet the evolv­ing needs of its cus­tomers. In ad­di­tion, Karvy Com­put­er­share plans to con­tinue to in­cor­po­rate op­er­a­tional best prac­tices and deepen its fo­cus on hu­man cap­i­tal in order to pro­vide best-in­class cus­tomer ex­pe­ri­ence, the com­pany said.

Gen­eral At­lantic has been ac­tive in In­dia since 1999 and has in­vested over $2 bil­lion in the In­dian and Asia-Pa­cific re­gion as of De­cem­ber 31, 2016. The fund’s current in­vest­ments in­clude Billdesk, Ci­tiusTech, House of Anita Don­gre, IIFL Wealth, Mu Sigma, Na­tional Stock Ex­change and PNB Hous­ing Fi­nance.

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