Impact funds make good returns in Equitas IPO

At a time when investors are struggling to find a good exit route, Equitas Holdings, the parent company of India’s fifth largest microlender Equitas, has given good returns, especially to social funds, through its initial public offering (IPO). The recent IPO of the Chennai-based company saw 10 investors exit with returns ranging from two to 13 times.  Stock Market Trading Tips

Venture Intelligence, which tracks private equity transactions, termed the returns for the three social investment funds — Aavishkaar, India Financial Inclusion Fund and Lok Capital — as “excellent”.Aavishkaar Goodwell exited with over 13 times returns for an investment of  $1.5-million it made in March 2008, according to Venture Intelligence data. The fund was one of the earliest investors in Equitas, valued at Rs 30 crore then. While India Financial Inclusion Fund saw its investment multiply 4.5 times, Lok Capital gained over two-fold.  Himanshu Tiwari Astrologer Blog

Multilateral institutions — International Finance Corporation and Netherlands Development Finance Company (FMO), which partially focus on social investments — too made good returns.However, for pure financial investors like private equities and venture capitalists  Financial Astrology

An analyst said, “The internal rate of return, which they have got, is very close to the expectation.” Helion Ventures exited with three times and Aquarius made more than double its investment. CLSA Capital and Sequoia Capital India exited with  2.3 times. Creation Investments made the smallest gain of 1.6 times.Siddharth Purohit, analyst at Angel Broking, said considering the current environment, this was a fair valuation. On SKS Microfinance, which went public in 2010, fetching investors higher returns, Purohit said the two could not be compared as the environments were different when they had listed   Personal Numerology
.