Blackstone plans 4 exits in India this year

Blackstone, the global financial powerhouse, is looking at four exits this year from its portfolio of 25-odd investments in this country, said a top source in the private equity (PE) company.

Most of these were part of its early investments in 2007-08. The source did not give the names of companies in which Blackstone is looking to exit. This will be the second exit of the firm after it sold out of Intelenet in 2011.

When asked, an official spokesperson declined comment.

The four exits, mainly in unlisted companies, are important for Blackstone as it will book fair returns for its investors, the source said.

Among the early investments by Blackstone in India are $50 million in Emcure Pharmaceuticals, $16 mn in Sparsh BPO Services and $65 mn in MTAR Technologies, an aerospace and defence company. It also invested $58 mn in CMS Computers' outsourced business services and $40 mn in CMS Infosystems.

While the PE is expecting good returns from investments in unlisted companies, the performance of its investments in listed ones have been disastrous. Its investment in Gokaldas Exports is down to Rs 31 a share as compared to its investment when the stock was trading at around Rs 275 a share. It had invested $157 mn in Gokaldas, a Bangalore textile maker, in August 2008. Similarly, its $150 mn investment in construction firm NCC at Rs 198 a share is now trading at Rs 34. Its investment in AllCargo logistics at Rs 155 a share is now trading around Rs 118.

The source said many of Blackstone's investments got stuck in India due to sagging fortunes of industries such as infrastructure. Most of the companies operating in this sector are caught in red tape, lack of environment clearances and extensive disputes over land acquisition.

Termed a sunrise industry just five years earlier, infrastructure is now in the dumps.

Blackstone made a successful exit from Intelenet, business process outsourcing company, in 2011 when it sold its stake for $634 mn.