Blackstone makes another partial exit from India’s Gokaldas

According to a filing, the shares were sold for INR113.5 apiece, which represents less than half of the stock's value when the firm made its initial investment in 2007. At this time, Blackstone committed to investing $165 million in the company, in addition to acquiring shares through an open offer as per local regulations. As of early afternoon trading on July 22, the stock was around the INR106 mark.

The partial exit continues an extended string of Gokaldas divestments by the GP, including a INR105.2 million sell-off tracked by block trade data in late 2014. This precipitated a 10% stake sale last month, which VCCircle estimated at the time as representing one-sixth of Blackstone's total holding in the company. It held 57.4% of the company as recently as the end of March, according to a filing.

Incorporated in 1979, Gokaldas maintains 25 garment manufacturing units with a workforce of about 30,000. It exports about two million garments per month. Revenue during the 2015 financial year declined 1% to INR11.4 billion. Net profit came in at INR346.9 million compared to a loss of INR67 million the prior year.

Blackstone claims private equity assets under management totaling almost $100 billion across 92 portfolio companies. The firm appointed Chris Heady as its Asia Pacific chairman earlier this year after closing its seventh global fund at $18 billion.

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• Topics
• South Asia
• Consumer
• Open market
• India
• The Blackstone Group
• manufacturing
• Exit