Carlyle-backed Repco Home Finance launches IPO
Repco Home Finance (RHF), which is backed by The Carlyle Group, Wolfensohn Capital Partners and Creador, launched its IPO on Wednesday, seeking to raise INR2.7 billion ($49 million).
According to a regulatory filing, the company will issue 15.7 million shares at INR165-172 apiece. It represents 25-29% of the post-issue paid-capital.
RHF, the housing finance unit of Repco Bank, has already received more than INR400 million from anchor investors, including Goldman Sachs India Fund, Reliance Banking Fund, Nomura India Investment Fund and Franklin India Prima Fund. A total of 2.3 million shares have been allocated to the 12 anchor investors at the higher end of the price range.
SBI Capital Markets, IDFC Capital and JM Financial Institutional Securities are serving as book runners and managers for the offering.
Carlyle invested around INR1 billion in Repco Home Finance between 2007 and 2009, through the purchase of a 49.7% stake. The PE firm sold a little over 23% in secondary transactions to Wolfensohn and Creador. It also sold 2.78% to Antique Broking and Shardul Securities, raising a total of INR1.9 billion through all sales.
Repco Home Finance will use the proceeds to meet future capital adequacy requirements. The company has a strong focus on southern India and has a loan portfolio of over INR31 billion as of September 2012. The loan portfolio grew at a compounded annual rate of 41% between March 2008 and September 2012.
Repco's net profit reached INR675 million in 2012, up from INR150 million in 2008. For the six months ended September 2012, the company reported a net profit of INR350 million.
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