InterGlobe Technology Quotient (ITQ), the travel reservation arm of InterGlobe Enterprises that owns IndiGo Airlines, is in advance talks to sell a controlling stake in the company to Capital International, people close to the development said.
The buyer, part of Capital Group companies — one of the largest global investment management firms with assets worth around $1trillion — is set to acquire 65% stake in ITQ for anything between $300 and $350 million (Rs 2,250 crore).
“Capital International will give exits to the existing investors and also buy some stake from the promoters,” a person close to the development said, adding that the deal would value the company around $550 million.
Standard Chartered PE, DBS and Credit Suisse had bought around 36% in ITQ in 2008 for Rs 560 crore. New Delhi-based entrepreneur Rahul Bhatia, who owns a majority stake in the company, will also see his stake coming down after the deal, according to the person quoted above. The three investors are expected to make close to 150% return in a span of eight years.
With around $5 billion invested in 80 companies in the emerging markets through six emerging markets funds, Capital International has been active in India in the last few years. So far, the fund has invested in companies such as IT services company MindtreeBSE 1.20 %, Manipal Global Education, Deccan Aviation that manages now defunct Kingfisher AirlinesBSE 3.03 %, Mankind Pharma and Multi Screen Media (Sony Pictures).
This year, the firm exited its investment in L&T Finance with internal rate of returns of around 4-5%. The fund had come in as an anchor investor along with Malaysia’s Khazanah Group during the pre-IPO round of the finance arm of engineering behemoth L&T. According to media reports, the fund has also recently bought a 3% stake in Intas Pharma from PE peer ChrysCapital for Rs 700 crore.