mtar: Ex-Blackstone India MD Mathew Cyriac scores 47x return from MTAR Tech

MUMBAI: Mumbai-based Florintree Advisors managed by former Blackstone India co-head Mathew Cyriac has raised practically Rs 500 crore by promoting a major chunk of its stake in MTAR Applied sciences, making 47 instances returns from a 4 yr outdated funding, arguably among the many largest exits in current instances.

Florintree Advisors backed entities which collectively owned 10% stake in Hyderabad based mostly MTAR Applied sciences bought shares at Rs 1800 via a number of block offers on Friday.

JM Monetary is known to have managed the blocks for Florintree.

In 2017, FLorintree, acquired round 33.1 p.c in MTAR from Blackstone India via two SPVs Fabmohur Advisors and Solidus Advisors. The typical value of acquisition was Rs 38.44 as per the RHP filed with SEBI on the time of IPO of the corporate final yr. Florintree bought virtually two-third of its holding by taking part within the Provide For Sale through the IPO.

MTAR Applied sciences’ Rs 596-crore preliminary public providing in March 2021, was subscribed 200 instances, the second-highest subscription amongst Indian IPOs.

The Hyderabad-based precision engineering firm manufactures important and differentiated engineered merchandise for nuclear, house and defence and clear vitality and owns seven manufacturing amenities in Hyderabad, together with an export-oriented unit.

Blackstone invested in MTAR in 2008. Nevertheless, the corporate struggled to develop over the subsequent decade with very skinny profitability and even losses in among the years. The corporate had reported a lack of Rs 17 crs in FY17. Nevertheless, put up funding by Florintree, the corporate has undergone a major turnaround.

Mathew Cyriac joined Blackstone as its second worker in India in 2006 and give up the agency as its senior managing director and co-head of India. He co-founded Mumbai based mostly Florintree Capital in 2017, when he give up the New York-based alternate asset supervisor. Florintree Advisors is a specialist India centered different funding supervisor based mostly in Mumbai and it presently manages PIPE and personal market investments.

Earlier in December, the fund invested Rs 100 cr in Satin Credit score Care. Cyriac’s different investments embrace garment exporter Gokaldas Exports, CMS IT Companies, insurance coverage dealer OneInsure, subway sandwich chain Bread Basket, mortgage supplier CityCash.

Underneath Cyriac, Blackstone scored one in all its finest exits in a decade when it bought a controlling stake in money administration firm CMS Infosystem to Baring Asia in 2015. Blackstone paid $65 million to accumulate 53 p.c in CMS and its holding for $301million, producing close to 5 instances return on a 6-year-old funding. Equally, it generated greater than thrice return final December when it bought its 18 p.c stake in Sonalika Worldwide Tractors to Japan’s Yanmar.

Shares in MTAR closed down 10.13 p.c to Rs 1,715.45 on Friday, considerably underperforming the benchmark index, which ended 0.45 p.c decrease.