Matrix Partners & Avigo Capital planning to sell MIPS stakes via Rs 300 crore IPO

MUMBAI: Private equity funds Matrix Partners and Avigo Capital plan to sell a part of their stake in education services provider Maharana Infrastructure and Professional Services or MIPS through a Rs 300 crore public offer that values the company atRs 1,300 crore.

The PE funds are seeking a return of more than 2.5 times on their investments made between 2011 and 2012, according to people familiar with the matter. “The company is looking at raising around Rs 300 crore. PE investors will partly exit stake in the IPO,” an investment banker said on condition of anonymity.

MIPS has appointed Axis Capital, SBI Caps and Anand Rathi to manage the issue. Matrix Partners first invested Rs 50 crore in MIPS in 2011 to purchase a stake and a year later Avigo Capital, a mid-market focused PE fund invested Rs 80 crore along with Rs 20 crore by Matrix. This year, both PE funds invested in the company, in which Avigo owns 22% and Matrix 16% while the rest is held by promoter and chairman Shailendra Bhadauria and his family.