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3i realizes £17m in UFO Moviez IPO

The private equity firm’s cash return to date is 1.7x based on the proceeds

3i Group plc reported yesterday that its portfolio company, UFO Moviez India Limited, has completed its initial public offering on Bombay Stock Exchange and National Stock Exchange of India.

India's biggest cinema network offered 9.6 million equity shares at INR 625 ($9.77; €8.97) per share, reducing 3i's stake in the company from 21.5 percent to 10.3 percent, now worth £17 million. The private equity firm received about £17 million from the IPO, valuing its cash return to date from its investment in the company at 1.7x.

3i most recently completed its three-year restructuring programme, including reducing its debt and balancing its net gearing ratio. As part of the restructuring, the firm is not looking to raise a new private equity buyout fund, Private Equity International reported, but it continues to invest in mid-market companies in Europe and North America.

Most recently, 3i entered an agreement to commit about €68 million to EURO-DIESEL and acquire a majority stake in the company.
At the time of publication, 3i's share price was 552.39 GBp, down 7.11 GBp or 1.27 percent from the previous close, giving it a market capitalization of £5.37 billion.