Carlyle acquires 27.65 percent in India-listed company

The Carlyle Group has acquired a combined stake of 27.65 percent in Allsec Technologies, a company listed on Indian stock exchanges, for $25.4 million as Carlyle founder joins board.

The Carlyle Group has acquired a 27.65 percent stake in an India-listed business process outsourcing company, Allsec Technologies. Carlyle first invested into Allsec in August last year when it purchased 3 million shares, a 20-21 percent stake, in a transaction worth $17 million.

Carlyle subsequently followed up on the private placement participation by offering to buy more shares in the open market.

Daniel D’Aniello, co-founder of the private equity group and Shankar Narayanan have joined Allsec’s board as directors.

Jagadish Ramamoorthi, founder and chief executive officer of Allsec, said: “This is the first time that any of the three founders of The Carlyle Group has joined the board of an Asian company.”

Shankar Narayanan, managing director and head of Carlyle’s growth capital India team said that as Carlyle had crossed a 15-percent stake threshold in the initial warrant purchase, it was required to make an offer to buy shares via an open market tender.

The investment will be used for acquisitions in the non-voice, business process outsourcing in the US, UK, Australia and India, and support Allsec’s expansion of its delivery capabilities.

The investment in Allsec marked Carlyle’s second India transaction from the $668 fund ‘Carlyle Asia Growth Partners III,’ a 2006 vintage. Company valuations, if India’s buoyant exchanges are to be used as a reference point, are quoted at above 20 times P/E, according to industry sources.