WestBridge takes minority stake in Indian snack foods producer

According to a regulatory filing, the private equity firm has bought 2.49 million shares from a promoter shareholder for a total consideration of INR645 million ($10.3 million).

Separate documents show that WestBridge Crossover Fund took 1.49 million shares at INR259.15 apiece, while Jwalamukhi Investment Holdings, a wholly-owned subsidiary of the fund, purchased approximately 995,000 shares at INR259.10.

The sellers were identified as Mohit Jain, DFM's vice chairman and managing director, and another family member. Prior to the transaction, the promoter group - led by members of the Jain family - held around 69% of the company.

DFM was founded in 1984 and claims to be a pioneer in the wheat-based packaged snack foods business. It also produces Crax Namkeens and Natkhat, a low fat crunchy wheat puff. Products are primarily distributed in northern India.

The company, which trades on the National Stock Exchange and the Bombay Stock Exchange, reported a net profit of INR63.1 million for the 2013 financial year, down from INR103.6 million the previous year. Sales and other income rose from INR1.7 billion to INR2.27 billion over the same period.

WestBridge Crossover Fund, which primarily targets PIPE investments, reached an initial close of $500 million in August 2011. The firm was founded in 2000, raised two funds and then merged with Sequoia Capital. The founders went independent again in early 2011 and re-launched the WestBridge franchise.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Consumer
• PIPEs
• South Asia
• WestBridge Capital Partners
• India
• Consumer
• PIPE