Multiples Private Equity likely to sell stake in APAC Financial Services

Multiples Private Equity is likely to sell its stake in APAC Financial Services, a non-banking financial services firm founded by former Deutsche Bank executive, Gunit Chadha at a total valuation of Rs 800 crore.

Investment banking sources said the private equity firm is in talks with several Indian banks on its plan to sell its 40.3 per cent stake in the NBFC but no final decision has been taken as yet.

Chadha said Multiples is not looking to exit APAC Financial Services. A joint statement by Multiples PE and APAPC Financial Services said: "Multiples PE is not exiting APAC Financial Services. We are proud of and committed to our partnership with APAC Financial Services. We are delighted to see the company scale up and grow stronger with a clear focus on GQP (Growth, Quality and Profitability).

APAC was set up by Chadha after he left Deutsche Bank as its CEO of Asia-Pacific and member of Global Group Executive Committee, and currently owns 52.5 per cent stake in the company. Multiples  Alternate Asset had acquired the stake for Rs 250 crore in 2018.  

But the company's planned ramp-up in operations was impacted in fiscal 2021 due to Covid-19 pandemic, which led to the slowdown in disbursements, per a statement by rating firm, ICRA. The disbursements picked up in the subsequent quarters and its loan book stood at Rs 581 crore as on March 31 this year as compared with Rs. 355 crore as on March 31, 2021, up 64 per cent on a year on year basis, ICRA said.

In a recent interview to this paper, Chadha said despite Covid, the company has grown 75 per cent annually over the last three years, and expects to grow 100 per cent in the fiscal 2023 with growth getting stronger across multiple unit metrics. “I can say with confidence that our PE partner -- Multiples Private Equity -- and us have shared a highly respectful and rewarding relationship, from inception to this day. Investee companies must treat private equity capital with respect, as PEs are answerable to their investors too. It’s a fiduciary business, let’s not forget that,” he had said.
 

For the financial year ending March this year, APAC Financial services reported profit of Rs 11.2 crore on revenues of Rs 84 crore, as per ICRA.