Warburg Pincus sells extra 4.2% of Moser Baer

According to VCCircle, the private equity major saw its investment lose more than 95% of its value over the course of the 12-year holding period. Warburg injected more than $200 million in the Delhi-based firm between 2000 and 2004.

In May, the investor sold 24.5% of its shares in Moser Baer, leaving it with just 9% of the company. Then, over the past month, Warburg investment entity ELM International disposed of its entire stake of 3.35%, while another unit, Randall Investments, also downsized its shareholding.

When combined, the two transactions represented a total of 4.2% of the company and generated proceeds of less than $1 million - meaning the individual price of the shares was less than half of that of those that made up the 24.5% stake previously sold.

Warburg now retains 5.7% of the company.

The firm has reaped varied returns from its India portfolio to date. It largest India exit was the sale of India's biggest mobile operator Bharti Airtel, in which it made a profit of $1.83 billion on its original $290 million investment.

Warburg's second largest exit in the country was its sale of Kotak Mahindra Bank, which was realized through a number of share sales. The first shares it jettisoned - which represented 1.88% of the company - in the first quarter of last year, reportedly provided the vendor with a 4x money multiple.

However, the PE firm's sale of Indian jeweler Vaibbav Gems in early 2011 came at an estimated loss of 92.5%.

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• Topics
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• Warburg Pincus Asia