Kubera Partners exits India's Planetcast
New York and Mumbai-based private equity firm Kubera Partners has agreed to sell its 28% stake in India’s Planetcast Media Services through a secondary transaction with an undisclosed PE buyer.
Kubera, which focuses on US-India cross-border plays, will receive about INR1.5 billion ($22.5 million) for the sale, net of transaction costs. According to a statement, the carrying value of the Kubera stake was $27.3 million as of June last year.
The firm invested $13.4 million in the company in November 2008. It had considered an exit via IPO in 2015, but noted challenges related to a decline in the rupee-dollar exchange rate and complications around increasing disclosure requirements by the Indian regulator.
Planetcast, formerly known as Essel Shyam Communication, specializes in up-linking and down-linking services for the broadcasting and satellite communication industries. The company has provided complete playout and broadcast facilities for Star TV, Disney-UTV and Sony in India. Revenue for the 2016 financial year was INR3 billion, up 15% on the prior year.
The investment was made via the Kubera Cross-Border Fund, which reached a final close of $226 million in late 2006 for sector agnostic commitments in Indian growth-stage companies. Kubera contributed $20 million to the vehicle.
Previous investments include medical research software provider Ocimum Biosolutions, metals manufacturer Synergies Castings and GSS Infotech, an IT services group that has also received backing from the PE arm of India's Infrastructure Leasing and Financial Services.
Kubera sold 9,000 shares in GSS at the end of 2014, citing a deep discount to its entry stock price. It did not list the company as a portfolio holding in its latest annual report.
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