Blackstone exits India's Agile Electric for $106m

The exit - which is expected to generate a 2x return - comes around 18 months after Blackstone paid HBL Power Systems, and other individual shareholders, $55 million for a 97.9% stake in the Agile Electric. 

This was a two-tiered transaction that also saw Blackstone acquire a 58% stake in IEW's Bombay Stock Exchange-listed unit Igarashi Motors India (IMI); the transaction triggered an open offer for an additional 26% stake in IMI of which Agile Electric had owned 62.8%, according to a disclosure. 

With an expected price of INR307-308 per share, the open offer will be worth around $41 million. Agile Electric currently holds a 41.92% stake in IMI, while Padmanaban Mukund - a shareholder in Agile Electric - has another 32.6%.

Agile Electric produces low-cost DC motors for the automotive industry, and claims to be one of the largest suppliers to the sector, with exports to the US, Europe, and Asia, accounting for 90% of its sales. The company has eight manufacturing sites in Chennai, seven of which are located in special economic zones.

This is understood to be the first time MAPE - which had acted as an advisor in the 2013 transaction - has acquired a stake in a company. The investment bank typically focuses on M&A advisory and private equity deal syndication.

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• Topics
• South Asia
• Exits
• Industrials
• India
• The Blackstone Group
• Exit
• manufacturing
• Trade sale