L Capital exits PVR, pockets Rs 485 crore

Sells more than 6 mn shares on NSE to Bajaj Allianz, Max Life and others in first major exit in India

L Capital Eco Ltd, a subsidiary of global private equity (PE) firm L Capital Asia, today offloaded its entire 15.03 per cent stake in PVR Ltd, India’s largest multiplex company by screens, by selling its shares in block deals on the National Stock Exchange (NSE).

About 6.24 million shares exchanged hands for Rs 776.56 each on NSE, helping L Capital pocket a tidy sum of Rs 485 crore. This is the PE fund's first major exit in India. Some of L Capital's other India bets include Fabindia and Genesis Luxury, where it continues to stay invested.

The buyers of L Capital Eco's stock today included Bajaj Allianz, Morgan Stanley, Kotak Mahindra (UK), Reliance Capital and Max Life Insurance Company. These buyers accounted for 60 per cent of the stock picked up. It was unclear who picked up the balance 40 per cent.  

In January this year, PVR had bought back the entire investment in equity and preference shares of L Capital Asia, which it had made in its subsidiary business PVR Leisure Ltd in August 2012.

Back then PVR had said that the PE fund would invest Rs.50.1 crore to set up a joint venture with PVR Leisure. L Capital Asia’s holding in the JV was around 44 per cent, with PVR taking 51 per cent and the remaining going towards management stock options.