Franklin Templeton invests Rs 67.5 cr in Kochi firm

Invests in Electronic Manufacturing Services and Embedded Software Services Provider - SFO Technologies

Franklin Templeton Asset Management (FT) (India), announced that, Franklin Templeton Private Equity Strategy (FTPES), a private equity portfolio managed by FT India and advised by Darby Asia Investors (India) (Darby India), has invested Rs. 67.5 crore in Kochi-based SFO Technologies. Other transaction details were not disclosed.

SFO is one of the largest electronic manufacturing services (EMS) players in India focused on low volume, high mix products in emerging segments such as healthcare, automotive and Industrial. SFO provides services across the entire spectrum including design, manufacturing and embedded software development.

It has received several awards for quality, including global supplier award several times, resulting in the company being identified as one of the five key strategic sourcing partners for one of the major Healthcare OEMs worldwide.

 

The company is part of the NeST group of companies and has presence across the globe and employs around 4,000 people. The investment is part of Rs 166.5 crore fund raise by the Company from three private equity investors including FTPES for providing growth capital as well as exit to the existing investor.

About Franklin Templeton Private Equity Strategy:

FTPES is a private equity investment product offered to high net worth individuals in India. The objective of FTPES is to make selective investments in high growth, mid-sized unlisted companies in India - in areas such as infrastructure, manufacturing, and consumer goods, and in related sectors.

Franklin Templeton has over 60 years of investment experience in international markets with presence in 30 countries and is one of the world’s leading investment manager with approximately $733.1 billion in assets under management as of April 30, 2011.

Darby India is an affiliate of Darby Overseas Investments (Darby), the private equity arm within Franklin Templeton Investments group. Darby is a premier investment manager in emerging markets private equity and infrastructure investing with over $2.6 billion in cumulative committed capital.

Risk Factors: An investment in the Portfolio involves a significant degree or risk and is suitable only for investors who fully understand and are capable of bearing the risks of an investment in the Portfolio. Investors should carefully consider the investment objectives and the investment restrictions of the Portfolio as described in the Disclosure Document and the Agreement. There can be no assurance that any of the Portfolio’s objectives, including its target rate of return, will be achieved, or that there will be any return of capital. In addition, there will be occasions when the portfolio manager or its affiliates may encounter potential conflicts of interest in connection with the activities of the Portfolio.

The investments made is subject to external risks such as war, natural calamities, policy changes of local / international Markets which affects stock markets. The deals in pipeline may or may not get finalised. Any policy change / technology updation / obsolescence of technology would affect theinvestments made in a particular industry. The Portfolio Manager is neither responsible nor liable for any losses resulting from the operations of the portfolios. Investors are requested to read the Disclosure Document and the Agreement carefully for the details of risk factors and conflict of interest.

Franklin Templeton Asset Management (India), the Portfolio Manager, has appointed Darby Asia Investors (India) (Darby) as the Investment Advisor for FTPES to provide non-binding and non- discretionary advice. The advice will be purely recommendatory in nature and the final investment decisions in respect of the Portfolio shall be taken by the Portfolio Manager at its sole discretion and responsibility.