Rabo Equity has sold its entire stake in Vacmet Ltd for around ₹140 crore back to promoters, thus making an exit from the investment made in 2010.
Rabo Equity had invested ₹50 crore in Vacmet in 2010.
Vacmet Ltd is into flexible packaging sector, producing BOPP Films, BOPET films and other specialty films at its three plants Mathura, Agra and Indore.
Rabo Equity said in a statement that it has completed the full exit of its India Agri Business Fund from Vacmet Limited via two tranches of buy back by the company.
“The fund has made a good return on sale of its 21.7 per cent shareholding acquired by investing ₹50 crore made in 2010,” it said.
Rabo Equity exited with over 2.5 times return on its investment and the deal was struck for around ₹140 crore, source said.
Vacmet has been growing at over 20 per cent each year. Its revenue has increased from ₹257 crore in FY 2010 to ₹1,848 crore in FY20.
Rajesh Srivastava, the executive chairman of Rabo Equity Advisors, said: “Vacmet has been a great investment for us. We always looked for companies where we could add value through our superior sector knowledge and outreach, associating with a strong yet receptive management.”
For Rabo Equity, this is the 7th exit out of 10 investments for the Fund. The portfolio has been well spread across agri-biotech, vegetables, packaging, dairy and nutraceuticals and has already returned the principle and a decent return to its investors.