SAIF nets 3.15x returns on lighting exit

SAIF Partners has completely exited its holdings in National Stock Exchange-listed lighting company Havells India. The firm invested INR750m in Havells in 2008.

SAIF Partners has completely exited its holdings in National Stock Exchange-listed lighting company Havells India, netting a 3.15x return on its initial INR750 million investment, a source from the firm told PE Asia.

SAIF first invested in the company in 2008 via an open market purchase of shares. The firm had been exiting Havells in several stages over the past 8 to 9 months, the source added. The firm first sold some shares in the third quarter of 2010 when the share price of Havells peaked at INR840 per share. It followed that with three further share sales, the most recent of which took place two weeks ago when the firm sold half of its remaining 2.7 percent stake in the company.

Havells is a $1.2 billion business which manufactures building circuit protection, switches, cables and wires, meters, fans and lamps. The company is present in more than 50 countries and runs 19 plants across India, Europe, Latin America and Africa. Havells also owns some of the global brands like Crabtree, Sylvania, Concord, Luminance, Linolite and SLI Lighting.

Warburg Pincus is also a shareholder of the company, having first backed it with $100 million in November 2007. According to notices submitted to the National Stock Exchange, the private equity firm continues to hold stakes in the company.

SAIF partners was established in 2001 as a part of Japanese media and telecommunication company Softbank Corporation. Cisco Systems was the lone investor in the firm’s maiden $400 million fund. The team gained its independence in 2005 and raised $643 million for its second fund.

Currently, the firm’s China team is poised to close its second RMB-denominated fund at RMB5 billion (€539.8million; $771.2 million).