Just two years after making its initial investment, US private equity firm Summit Partners is looking to exit agricultural biotechnology company Krishidhan Seeds, according to Indian business paper the Financial Express, citing sources with knowledge of the matter.
These people said that Krishidhan Seeds’ promoters will buy back Summit’s stake for somewhere in the region of INR 1.55 billion to INR 1.60 billion (USD 27.83 million to USD 28.73 million), to be financed through debt.
They added that a deal is expected in the next month.
Summit first injected USD 30.00 million into Krishidhan Seeds in April 2010, and the Financial Express said that as at 30th September the private equity firm held a 24.9 per cent stake in the firm.
However, when contacted by the paper, Sushil Karwa, managing director of the Maharashtra-based company, denied that its investor was planning to exit the business.
Krishidhan Seeds takes a research-based approach to developing high quality seeds for the Indian agricultural market, according to its website.
Products include cotton, cereals, pulses and vegetables, and the firm also provides crop protection and nutrients for farmers.
The group comprises a number of companies, including Krishidhan Vegetable Seeds, Rajendra Agri Products and Krishidhan Research Foundation.
Citing data from the Ministry of Corporate Affairs website, the Financial Express said the firm reported a net loss of INR 37.7 million for the year between 1st October 2010 and 30th September 2011.
According to data from Zephyr, other recent deals in the Indian agricultural sector include a USD 15.00 million investment by Peepul Capital in Hyderabad-based organic farming group Sresta Natural Bioproducts in 2011.
Earlier this year, Rabo Equity Advisors injected USD 10.00 million into Super Agri Seeds, headquartered in Secunderbad.
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