PE firms set for part exits as India’s VRL Logistics, UFO Moviez file for IPOs
New Silk Route (NSR) will sell shares in VRL Logistics and Providence Equity Partners and 3i Group will make partial exits from UFO Moviez as both companies filed for IPOs in India.
VRL is looking to raise up to INR1.42 billion ($22.4 million) by selling 17.1 million existing shares and an unspecified amount of new shares, according to a draft red herring prospectus (DRHP). NSR will sell 14.6 million shares with the promoters, Vijay and Anand Sankeshwar, offloading 2.6 million.
NSR currently holds 19.3 million shares in VRL, or a 22.51% stake, while the promoters own 76.7%. The private equity firm committed INR1.75 billion to VRL in April 2012, buying 4.4 million equity shares and 11 million preference shares. The preference shares were converted to equity in September 2013.
VRL claims to operate the largest privately-owned fleet of commercial vehicles in India, providing parcel delivery, courier and trucking services across 28 states and four union territories. As of September 2015, it had 3,446 vehicles - most of which are company-owned - and a network of 603 branches and 346 delivery agencies.
Revenue for the 12 months ended March 2014 was INR14.9 million, up from INR13.3 billion the previous year. Net profit grew from INR457 million to INR570 million over the same period.
UFO Movies operates India's largest satellite-based digital cinema network as well as an in-cinema advertising platform. The company said in a DHRP that it is seeking to raise up to INR7.5 billion through the sale of an unspecified number of shares, including equity held by 3i and Providence.
3i invested $22 million in UFO in 2007 and currently holds a 21.5% stake in the company. Providence holds 35.7% having committed INR2.6 billion (then $58.6 million) in 2011.
UFO delivered more than 1,500 movies in 22 languages to 4,703 screens with aggregate seating capacity of around 2.14 million people in India for the 12 months ended March 2014. It has a network of 6,611 screens worldwide, including 4,912 in India and 1,699 in Nepal, the Middle East, Israel, Mexico and the US.
The company posted revenue of INR2.7 billion for 2014, up from INR2.1 billion the previous year. Net income increased from INR251.8 million to INR349.4 million over the same period.
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