AIM-listed India-focused fund house Trikona Trinity Capital has exited Mumbai-based real estate developer Phoenix Mills at a 46% loss on its two-and-half-year-old investment.
It sold its entire 1.2% stake for £3.9 million (Rs 30 crore) in the open market last week at a price of Rs 170 a share. The share price has risen over 10% since then.
Trikona Trinity had acquired the shares in June 2007 for £7.3 million and has exited at an absolute loss of approximately £3.4 million. However, it managed to recoup the sharp drop in valuation that it suffered in the stock market crash between September 2008 and March 2009.
As of March 31, 2009, the value of its investment in Phoenix Mills had whittled down to just £1.7 million. Other PE investors in Phoenix include New Vernon India who held 4% in the company as of September 30.
Phoenix Mills, which has a market cap of Rs 2,700 crore ($580 million), reported consolidated net profit of Rs 76 crore against Rs 43 crore in 2007-08.
Phoenix Mills is into large format retail-led mixed use development of real estate in city centres. Originally, a textile manufacturing company owning large tract of land at Lower Parel in Mumbai, the company was listed in the Bombay Stock Exchange way back in 1959.
It entered into real estate in late 80s and in 1992 built the first multi-storied Phoenix residential towers on the Phoenix Mills Land. Over the last decade, it entered into various ventures to tap opportunities in the entertainment segment, retail malls and commercial space.