Jupiter Capital exits rail freight co IIL at $10 mn

Independent MP Rajeev Chandrasekhar-led Jupiter Capital has sold its entire 24 percent stake in rail freight company Indialinx (IIL) to an arm of Singaporean shipping company NOL for USD 10 million.

"It was a strategic investment for us, made in 2006. We have sold the stake to NOL's subsidiary APL Logistics," Jupiter Chief Executive Sudhakar Gande told Media.

A statement on the APL's website said it has bought 24 percent stake at USD 10 million. "The consideration for the acquisition is around USD 10 million and was arrived at after arm's length negotiations on a willing buyer, willing seller basis, taking into consideration, among others, the financial position and business prospects of IIL," it said.

The transaction gave the proprietary fund a "good return" and was carried out as per plans.

After the transaction, APL becomes 100 percent owner in the business, Gande said. A senior official from Jupiter Capital said IIL, which was started as a joint venture between APL and Jupiter, is a profitable company clocking a turnover of Rs 350 crore at present and the exit happened at over three times the invested amount.

The joint venture was formed soon after private parties were allowed into rail freight business in 2006.

When asked about the long time taken for the exit, Gande stressed that this was a strategic investment and not like a private equity one, done explicitly with an exit in mind.