PE General Atlantic Buys 74% in Karvy Computer
STAKE SALE Australia’s Computershare said to be selling 50%, Karvy owner 24%
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.