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Chennai-based private equity firm TVS Capital Funds is understood to be scripting a healthy exit from Landmark, a pan-Indian book and music retail chain owned by Tata Group company Trent Limited. TVS Capital would sell its 24 per cent stake in Landmark to the Tata Group firm for about Rs 100 crore, it is learnt.
TVS Capital had acquired the stake for about Rs 65 crore in 2009. The return, therefore, would be about 1.5 times.
Trent, Landmark and TVS Capital declined to comment on the transaction. However, three investment bankers privy to the development said the deal would be closed soon.
TVS Capital’s acquisition of stake in Landmark in 2009 had valued the company at Rs 270 crore. Based on Landmark’s revenue of Rs 196 crore for 2008-09, the revenue multiple during the investment was 1.38. Landmark’s current revenue is about Rs 350 crore, and the company is on an expansion mode.
Recently, the Rs 600-crore TVS Capital had exited third-party logistics service provider TVS Logistics Services. In the transaction, it had recorded cash on cash returns of 2.23 times, or an internal rate of return of 22.23 per cent. The fund sold its stake to private equity major Kohlberg Kravis Roberts, which, along with existing investor Goldman Sachs, pumped in Rs 268 crore ($53 million) into the firm.