PEs look to exit InterGlobe unit

BENGALURU: Standard Chartered Private Equity , along with Credit Suisse and DBS Group, are offloading a 37 per cent stake in travel outsourcing firm InterGlobe Technology Quotient ITQ), a strategic business unit of InterGlobe Enterprises that operates budget carrier IndiGo, in a deal valuing the company at $350$400 million. The company has mandated Citigroup to manage the deal. The three investors had bought a little over one-third stake in the Gurgaon-based travel technology solutions company or $140 million in 2008.

The divestment in ITQ comes close on the heels of nterGlobe Aviation getting Sebi's approval to raise Rs 2,500 crore through an initial public offering (IPO). Aviation entrepreneur duo Kapil Bhatia and his son Rahul Bhatia own 64 per cent in ITQ, while DBS Nominees, Marina Private Equity Singapore and Unity Stone Investments own 10 per cent, 18.75 per cent and 7.5 per cent respectively .

ITQ is involved in distribution of an international centralized reservation system, setting up, maintaining, and operating data in formation processing centres and bureaus for processing general information.Its network spans over 500 cities with 23 offices reaching out to over 12,000 agency locations. The company clocked $90 million in revenues and profit after tax (PAT) of $20 million last year. ITQ went through a rough patch when Kingfisher Airlines witnessed turbulent times.

ITQ, headed by Anil Parashar, is the official distributor of travel commerce platform Travelport in India, Sri Lanka and five other markets in the Asia Pacific region. Travelport provides distribution, technology , payment and other solutions and its platform connects travel providers, travel agencies, corporations and developers.The US-based Galileo International had appointed InterGlobe as its national distribution company in India in 1994.