India's leading private

Frontline Strategy's SVF fully exits Titagarh Wagons in India

  • Strategic Ventures Fund has completely exited its investment in Titagarh Wagons Limited - SVF generated a total return of 5x
  • Titagarh Wagons is India's leading private railway wagon manufacturing company
  • SVF had invested in Titagarh Wagons in July 2005 to provide expansion capital to the company

Mauritius, February 1, 2010:
Strategic Ventures Fund (SVF), a private equity and PIPE fund managed by Frontline Strategy Limited, has completely divested its holding in Titagarh Wagons, India's leading private railway wagon manufacturing company. SVF has made a total of 15 investments in Indian companies and this is SVF's 9th complete divestment. SVF had originally invested in Titagarh Wagons in July 2005 to provide growth capital to the company. After SVF's investment, Titagarh Wagons attracted capital from other institutional investors such as Chrysalis Capital, Indus Capital, GMO and GE Capital as well. SVF has generated a return multiple of 5x, through a mix of trade sales, offer through IPO and secondary market sale. SVF had vacated its seat on the Board of Directors of Titagarh Wagons after its IPO in April 2009.

Atim Kabra, Director, SVF, commenting on the investment, said "It has been a pleasure to work with the Chowdhary family, the founders and controlling shareholders of Titagarh Wagons. Our value enhancement has been a by-product of the hard work put in by this management and their vision. We wish them well in all their future endeavours".

About Titagarh Wagons Titagarh Wagons Limited is one of the leading private sector wagon manufacturers in India. Titagarh is a young company incorporated in 1997-98, which is primarily engaged in the business of manufacturing railway wagons, Bailey bridges, heavy earth moving and mining equipment, steel and SG iron castings of moderate to complex configuration, etc. As an "Industry Partner" to the Defence Research and Development Establishment, Ministry of Defence ("DRDO"), the company also manufactures other products for the Indian defence establishment, such as special wagons, shelters and other engineering equipments.

The Company believes that it is the only private sector company registered with the Ministry of Defence, Government of India to manufacture Bailey bridges and other related accessories in India. The Company's vision is to be a leader as a manufacturer of heavy engineering equipment and a world-class service provider for the infrastructure sector, and to be known as a dependable and preferred partner for growth.

About Frontline Strategy Founded in 2000, Frontline Strategy Limited (www.frontlinestrategy.com) is an asset management company with primary focus on private equity investments. Prominent investments of Frontline Strategy's first fund vehicle, Strategic Venture Fund (Mauritius) Ltd, include: CBay Systems & Services, Inc, an early-stage Frontline Strategy investment, and the largest provider of outsourced knowledge processing services for the global healthcare industry, after the acquisition of MedQuist, Inc; Astra Microwave Products, a manufacturer of high-end microwave and RF-based components for defense, space and civil telecom applications; Titagarh Wagons, India's leading private manufacturer of railway wagons; Alfa Transformers, a manufacturer of power, distribution and furnace (specialty) transformers; Shilpa Medicare, among India's leading specialty pharmaceutical manufacturers, primarily focusing on custom synthesis and oncology APIs.

Frontline Strategy currently manages two India centric funds: Strategic Ventures Fund and India Industrial Growth Fund and have just launched their new fund, The Clove Route Fund.

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