IDFC exits Seaways via share buyback

Financial details of the transaction have not been disclosed. However, IDFC’s stake was said to be worth around INR800 million ($12.5 million) at the time of the IPO filing last year. The decision to defer the float was attributed to strong performances in 2016-17 and the current financial year.

“The partnership between IDFC PE and Seaways over the past nine years has been mutually rewarding, and we thank them for their unstinted support and confidence in us,” PVK Mohan, chairman and managing director of Seaways, said in a statement. “With the global freight rates making a marked recovery, and increased manufacturing activity in India, we are excited about the exponential growth prospects of the group. Seaways is uniquely positioned to emerge as a globally preferred logistics partner.”

Seaways generated total income of INR7.2 billion in 2015, with EBITDA from continuing operations of INR511 million. This performance capped five years of growth for both total income and EBITDA at an annual rate of 9% and 36.3%, respectively.

IDFC Alternatives, the alternative asset investment arm of India’s IDFC Group, first invested in Seaways in 2008 through its Infrastructure Fund II. The GP closed Fund II at a hard cap of INR55 billion in 2014 with a $90 million commitment from its parent company. The strategy of the vehicle has been to invest in core Indian infrastructure assets covering both operational and under-construction projects with proven partnerships that have created value.

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• Topics
• South Asia
• Industrials
• Buyback
• India
• IDFC Private Equity
• shipping
• Logistics