Mistral Solutions, the Bangalore-based product realisation company in the embedded space, is understood to be in an advanced stage of roping in a strategic partner. The company is understood to be looking at a valuation of Rs 150 crore for the divestment and is expected to divest up to 15 per cent.
Market sources indicated that discussions with at least two firms were in an advanced stage and the move to divest stake is hitting a wall obviously on valuations. “Given the market conditions, the investors are willing to fork out a valuation of around Rs 100 crore, but the company is asking for a valuation of Rs 150 crore,” investment banking sources explained.
Mistral posted topline of Rs 70 crore and net profit of Rs 10 crore in fiscal 2008.
Mistral offers professional design services which include hardware and software development, customizable product designs, systems engineering and solutions and enables an effort to reduce time-to-market for a broad range of embedded systems. The company focuses on domains including defense, aerospace, semiconductor, wireless, automotive, consumer electronics, and industrial applications.
Anees Ahmed, chairman, Mistral Solutions, said that the company is open to roping in a global strategic investor who can bring in captive business. “Quite a few global companies are in discussions with us and we haven’t yet decided on a partner,” he added.
Mistral employs around 300 people and has cash in hand of Rs 25 crore. “We are not looking for a pure financial investor but a partner who will scale our business,” Ahmed noted.
The move to rope in a strategic partner comes nearly a year after Mistral raised $6.5 million from Nexus India Ventures and JAFCO Asia. Mistral raised this corpus to help accelerate its global expansion and facilitate product and IP development initiatives.
