Over the past two to three years, we have seen global private equity (PE) companies buying out listed, Indian midcap companies. There was, for example, Advent buying into DFM Foods, Blackstone buying Essel Propack and KKR buying out the founders of JB Chemicals (a Nepean Capital investee company).
As a result, most of these companies have seen a re-rating since there is a perception that companies having PE funds as owners/management are as good as ones managed by MNCs, in terms of governance, because of which their stocks trade at a premium compared to their local peers.
One such company is SeQuent Scientific, a Nepean Capital portfolio company. It was carved out from Bengaluru-based Strides Arcolabs and, within just eight years of its founding, it has emerged as India’s largest animal-health company. With annual revenue of over $200 million, SeQuent is among the top 20 animal health