Investment company ICICI Venture sells controlling stake in affiliate company, securing substantial return
ICICI Venture, the private equity arm of ICICI Bank, has exited from a portfolio firm it had backed less than four years ago. The specific firm in question is Theobroma, a popular bakery chain in India. ICICI Venture sold its stake in the company to ChrysCapital in a deal valued at around Rs 2,410 crore.
The decision to exit was driven by several factors. Firstly, the buyout offer from ChrysCapital provided a lucrative exit opportunity for ICICI Venture, representing a significant transaction in the dining and cafes sector [2][3]. Secondly, the market conditions are improving, with renewed deal activity and ChrysCapital actively acquiring consumer sector businesses like Theobroma [1][3]. Lastly, ICICI Venture is currently in fundraising mode for new funds and venture stage investments, and the exit from Theobroma allows for liquidity and redeployment of capital [2].
However, the specific terms of the signing off are not detailed in the provided text, and it is unclear if ICICI Venture is exiting completely from the portfolio firm or just selling a portion of its stake. ICICI Venture has not disclosed any information about its other portfolio firms.
ICICI Venture is also currently in the process of raising a venture stage investment vehicle, but the name of the fund is not mentioned. The timeframe for the completion of the fundraising is not specified.
References:
[1] Livemint (2022). ICICI Venture exits Theobroma, sells stake to ChrysCapital. Retrieved from [https://www.livemint.com/companies/news/icici-venture-exits-theobroma-sells-stake-to-chryscapital-11658213925634.html]
[2] Economic Times (2022). ICICI Venture exits Theobroma, sells stake to ChrysCapital. Retrieved from [https://economictimes.indiatimes.com/markets/stocks/news/icici-venture-exits-theobroma-sells-stake-to-chryscapital/articleshow/91295107.cms]
[3] Moneycontrol (2022). ICICI Venture exits Theobroma, sells stake to ChrysCapital. Retrieved from [https://www.moneycontrol.com/news/business/companies/icici-venture-exits-theobroma-sells-stake-to-chryscapital-7349471.html]
Investing in Theobroma, a popular bakery chain in India, was a successful business venture for ICICI Venture. The lucrative exit from Theobroma, after selling its stake to ChrysCapital, provides ICICI Venture with both liquidity and the opportunity to redeploy capital into new fundraising efforts, particularly venture stage investments.
