 "Akhil Gupta")
After spending eight years at the helm of private equity (PE) firm Blackstone India, Akhil Gupta has stepped down as its managing director. On Monday, Blackstone announced Amit Dixit and Mathew Cyriac would jointly lead its PE business in India.
"They will take over this role from Gupta who will assume the position of non-executive chairman of Blackstone India," Blackstone said. Akhil will continue to guide Blackstone’s activities in India.
Tony James, president, said, “Blackstone is a force in Indian PE, thanks in large part to Akhil’s leadership. Akhil has built a terrific team and we are confident Amit and Mathew will continue driving our performance in Indian PE.”
Struggle in india
Blackstone continues to struggle with each of its investment in India. In the past couple of years, the value of listed portfolio companies of Blackstone has fallen drastically. Blackstone invested $1.7 billion in 20 PE transactions over the last eight years.
For example, Gokaldas Exports continues to underperform after Blackstone bought a 68 per cent stake from the Hindujas in 2007 for $158.7 million. Blackstone paid Rs 275 a share of Gokaldas Exports. On Monday, the scrip closed at Rs 56.7 on the BSE exchange.
Blackstone increased its stake in Financial Technologies (FT) from seven per cent in September, when the share price was between Rs 800 and Rs 850, for Rs 250 crore.
FT’s shares fell 70 per cent in July-August, after the Jignesh Shah-led company announced suspension of trading on the National Spot Exchange and deferred client payments. FT closed at Rs 151.9 on BSE.
Allcargo Global Logistics, in which Blackstone has invested $60 million since 2008, has also seen a drastic fall in its share price.
Currently, shares of Nagarjuna Constructions, in which Blackstone has 10 per cent stake, closed at Rs 28 on BSE. The PE firm had invested $150 million in Nagarjuna when the latter’s shares were Rs 202-225.
The PE fund holds 7.17 per cent in Monnet Ispat, buying shares when they ranged from Rs 478 to Rs 500. On Monday, shares of Monnet Ispat closed at Rs 144.35 on BSE.
‘Strongest teams’
Gupta said, “We have built one of the strongest teams of investing and operating professionals in India, who will carry the momentum forward. I am delighted that, in my new stewardship role, I will continue to work with outstanding professionals of Blackstone, to be part of their continuing success, and also afford the time and flexibility to pursue my wider and global interests, including academics and philanthropy.”
In India, Blackstone has a team of 19 investment and portfolio operations professionals in private equity and nine professionals in real estate.
Before joining Blackstone, Gupta served as chief executive officer (corporate development) for Reliance Industries, focusing on developing the company’s oil & gas, refining and telecom businesses. Gupta graduated from Indian Institute of Technology-Delhi in 1973 and Graduate School of Business at Stanford University in 1981. He serves on the boards of Allcargo Logistics, Nagarjuna, Moser Baer Projects, Jagran Prakashan, Jagran Media Network Investment and Trans Maldivian Airways.
