
ICICI Venture in second attempt to offload Updater Services
Indian investor ICICI Venture is attempting to exit its stake in Indian facilities management company Updater Services for the second time.
The private equity and venture firm invested almost INR1 billion ($18 million) in Chennai-based Updater, one of India's top three integrated facilities management companies, in early 2008. It acquired a 40% stake, for which it has now mandated Edelweiss to find a purchaser, according to The Business Standard. It is aiming for a 2x money multiple on its investment.
This comes after ICICI tried and failed to sell the stake in mid-2011.
Updater generates a turnover of INR4 billion and has an EBITDA margin of 10%. It employs 30,000 people across 14 cities in India and offers integrated facility management services for the information technology, ITeS (information technology-enabled services), manufacturing and hospitality industries.
Although Updater's managing director, T. Raghu Nandana, has the first right of refusal if the stake goes on the block, it appears he has little appetite for a buy-back. According to investment bankers, an INR4-4.5 billion M&A deal could instead take place between Updater and another pan-India or a global corporation.
Last month it was reported that ICICI and Apollo Global Management were close to raising $350 million to invest in Indian distressed assets. Launched last year, the joint fund, which will target Indian companies that face special or distressed situations, require restructurings or are spinning off assets, is targeting a total corpus of $750 million. Its investments will also extend to non-performing loans.
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