Ex-blackstone exec hunts for next IPO star
CALIFORNIA: Mathew Cyriac is looking to take at least two companies public in India in the coming years after MTAR Technologies Pvt.’s debut success.
MTAR Technologies, a precision engineering firm that Cyriac bought from Blackstone Group Inc. in 2017 when he left the private equity firm, has seen shares risen almost 62% since its March debut. The listing is part of India’s red-hot initial public offerings market where companies have raised about $4 billion since the start of the year, on track for the busiest first-half since 2017, according to data compiled by Bloomberg. UBS Group AG expects a record year for first-time share sales in the country despite the coronavirus pandemic.
Cyriac joined Blackstone as its second employee in India in 2006 and eventually became the firm’s co-head for private equity in the country.
He now runs his own firm Florintree Advisors and remains optimistic about the IPO market.
“There will be significant interest in new business models in fintech, digital companies and analytics-based IT services,” Cyriac, 51, said in an interview. “We expect to take at least two of our companies public in a few years.”
Florintree has five portfolio companies, mainly in the engineering and fintech sectors, he said.
The firm has recently bought a minority stake in Mobikwik, an Indian digital payments platform, as well as drugmaker Wanbury Ltd.
The Mumbai-based investment firm has invested less than $100 million in the past three years and the MTAR’S IPO brought in 3.5 billion rupees ($48 million) of proceeds that could strengthen its war chest. It also secured a commitment from a family office for about 4 billion rupees and another 7 billion rupees from some local investors.
Cyriac plans to expand the investment portfolio to 10 companies and has been in discussions with a gold loan mortgagor and a heavy engineering company that’s going through debt restructuring, he said.
“We will be looking for fallen angels, buy them and restore to their old glory,” he added.