PEs exit micromax through buyback as valuation crashes 93% in 4 years

KOLKATA/NEW DELHI: Micromax Informatics’ valuation has crashed about 93% in roughly four years from a peak of Rs 21,000 crore in 2015 to less than Rs 1,500 crore now, with major private equity investors including TA Associates and Sandstone Investment exiting the Indian handset maker.

PE players are selling 6.9% stake in the company for Rs 93.65 crore to the promoters, increasing their holding to more than 85%, Micromax said in its latest regulatory filings with the Registrar of Companies (RoC).

The four promoters — Vikas Jain, Rahul Sharma, Sumeet Kumar and Rajesh Agarwal — hold 19.57% each before the buyback and their holding will go up proportionately after the transaction is completed.