TVS Shriram Growth fund exits Wonderla Holidays with 70 % IRR

Investment generated over 200 % absolute return, says the fund

Private equity fund TVS Shriram Growth Fund Scheme 1B has fully exited its investment in the theme park operator Wonderla Holidays Limited.

The fund had acquired 13.23 lakh shares in the theme park operator in April/May 2014 as an anchor investor participating in a pre-IPO placement.

The shares, acquired at Rs 125, have recently been sold in tranches, at an average price of Rs 384.33 per share. The fund has now fully exited this investment.

With the original investment of Rs 16.54 Crore fetching Rs 50.85 crore in secondary market exits, this investment has generated over 200 per cent absolute return and about 70 per cent internal rate of return (IRR) for the fund, on the original capital deployed.

Gopal Srinivasan, Chairman of TVS Capital Funds, said: "This is an investment where we saw excellent standards of entrepreneurship, governance and quality brought in by the promoter Kochouseph Chittillappilly, combined with a strong sense of passion, energy and innovation in business from Arun Chittillappilly. Kochouseph and Arun carry very high credibility in the industry, and are known to be very committed to customers and investors".

Wonderla is a theme park operator that owns and operates three well-frequented parks in the cities of Bangalore, Kochi and (recently commissioned) Hyderabad.

It also operates an 84-room resort in Bangalore under the brand name "Wonderla Resort".

TVS Shriram Growth Fund 1B is the second private equity fund launched by TVS Capital Funds in 2012 which manages around Rs 600 crore. The fund focusses on consumer discretionary and financial sector investments. It owns a portfolio mix of PIPE investments and stakes in unlisted companies to optimally balance between exit flexibility, liquidity and returns for investors.