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Temasek's partial divestment in India's Medanta generates IRR of 26%

The Edge Singapore
The Edge Singapore • 1 min read
Temasek's partial divestment in India's Medanta generates IRR of 26%
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Temasek has trimmed its holdings in the Medanta hospital chain in India, taking advantage of a 175.9% increase in its India-quoted shares over the past 12 months.

Temasek on Wednesday sold a stake of 1.12%, or 3 million shares at INR 1,315 each, collecting proceeds of around $63.9 million, according to sources familiar with the deal.

Singapore's state investment agency first invested in Medanta back in January 2015, paying $113 million to take the stake off Punj Lloyd. It has increased the bet in subsequent years.

At this price, Temasek was able to generate a multiple on invested capital of 8x, and an internal rate of return of 26% for this 1.12% stake over the holding period of 9 years.

Following the partial sale, Temasek continues to hold a stake of 17% in Medanta, which, based on February 15's closing price of INR1,390, is valued at just over $1 billion.

 

See also: Markets normalising as investing continues on shaky ground

 

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