Blackstone set for part exit as India’s Nuziveedu files for IPO

The company plans to raise INR1.25 billion ($19.8 million) through an issue of new shares, while the promoter and Blackstone will sell up to 11.9 million existing shares. The promoter, Mandava Prabhakara Rao, plans to offload as many as 9.89 million shares, while Blackstone will sell 1.98 million.

The exact size and pricing of the offer has yet to be determined, according to a regulatory filing.

Blackstone committed INR2.5 billion to Nuziveedu in 2010, and the prospectus indicates the PE firm was allotted preference shares worth this amount in February 2011. It has converted these shares to equity shares in two tranches, in January 2013 and January 2014. Blackstone currently has a 10.56% stake in the business, while the promoter holds 25.77%.

Nuziveedu develops seeds for a range of field crops and vegetables. It is said to be the largest privately-owned seeds producer in India by revenue over the last three years. As of December 2014, the company had developed 27 different seeds and had operations in 19 states. Cotton seed sales account for roughly two thirds of Nuziveedu's revenue.

For the 2014 financial year, the company posted revenue of INR12.2 billion, down from INR12.4 billion in 2013. However, net profit increased slightly over the period to reach INR1.51 billion. For the nine months ended December 2014, revenue and net profit were INR12.5 billion and INR2 billion, respectively.

In January Blackstone agreed to sell its entire stake in Indian auto parts maker Agile Electric Sub Assembly to Japan's Igarashi Electric Works (IEW), and Indian boutique investment bank MAPE Advisory Group, in a $106.4 million deal.

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• Topics
• Exits
• South Asia
• Industrials
• IPO
• Exit
• The Blackstone Group
• India
• Agriculture