Evolvence India Holdings Plc ('EIH' or 'the Company'), an Isle of Man, private equity fund of funds holding company that focuses on India, today announced its unaudited net asset value as of March 31, 2007, being its first update since admitting to AIM on 23 March 2007.
Evolvence India Holding's net assets, at that date, are valued at $ 67.9 million and net asset value per share is $ 1.044, based on 65 million ordinary shares issued during an initial public offering of common stock on AIM, a market of the London Stock Exchange plc. EIH has committed $ 39.5 million of the net proceeds into Evolvence India Fund ('EIF'), an established private equity fund of funds with a co-investment pool focusing on growth capital in India. The company has also committed $ 6 million to the Evolvence India Life Sciences Fund, ('EILSF') a private equity fund for investments in life sciences businesses in India. EILSF has completed its first investment of $ 5 million in a cancer care services company based in Bangalore, India.
The company's investment objective is to give investors access to a diversified Indian private equity portfolio while mitigating issues usually associated with private equity investments, such as lack of liquidity and relatively large minimum investment size.
The company intends issuing regular NAV valuation updates at the end of each quarter.
Evolvence India Fund has reported an appreciation of 20% in its portfolio based on its current size of $ 220 million. EIF's portfolio includes investments in seven private equity funds and five co-investments. The number of portfolio companies (direct and underlying fund investments) stands at 70 in well diversified growth sectors of the Indian economy. The portfolio has had six successful full exits and three partial exits. The Fund expects a few more liquidity events in the near term.
Jay Jegannathan, CEO, Evolvence India Holdings, said: 'Our significant on the ground network in India, deep industry knowledge and global approach allows us to selectively capitalise on the range of opportunities available in the Indian private equity market. We are confident that all our investments through EIF and EILSF will result in sustainable value creation for our shareholders.'
India's economy grew 9.4 percent in the fiscal year that ended in March 31 2007, its fastest rate in 18 years and second only to China among major global economies, according to Reuters report. Although inflation is now coming down, most economists say India's economy is continuing to grow well above its long-term sustainable rate. In the past four years, gross domestic product has grown at an average annual rate of 8.6 per cent, triggering a reappraisal of the country's potential as a force in the world economy. India logged third-quarter GDP growth of 8.7 per cent and the Reserve Bank of India expects the economy to grow 8.5 per cent in 2007-08.
'The growth rate is clearly impressive and we are confident of the long term growth prospects of the Indian economy. The Company is currently in advanced stages of finalising two investments which will be announced shortly,' added Jegannathan.