Nalanda Capital closing $325 million exit deal: Was it a lengthy investment worthwhile?
In the dynamic world of Indian investments, Nalanda Capital, a private equity-style firm founded by former Warburg Pincus executive Pulak Prasad, continues to stand out with its patient, research-driven approach. Overseeing over Rs 50,000 crore (~$6 billion), the firm focuses on selective investing in listed Indian companies, maintaining a low portfolio turnover ratio of less than 5% annually.
One of Nalanda Capital's hallmark investments is in Page Industries, the maker of Jockey in India. The firm first invested in 2008 at about Rs 420 per share. Fast forward to 2025, the stock price has soared above Rs 46,000, and Nalanda still holds shares valued at roughly Rs 3,600 crore, though its stake has been reduced from 10% to 7%. This investment has delivered a compounded return of approximately 32% annually, multiplying the original capital by 100 times over 15+ years.
Recently, Nalanda Capital has been wrapping up a significant exit, expected to net over $325 million. This exit pertains to a company it backed about 17 years ago, demonstrating the firm's patient and long-term private equity style approach to exits. The firm has built a portfolio worth over $4 billion in India through such deep conviction bets.
However, there is no explicit information about Nalanda Capital participating in new IPOs in India. Instead, the focus remains on managing and selectively exiting deep-held investments. Another portfolio firm, Faering, is not mentioned in relation to an IPO.
Meanwhile, in a separate development, Capgemini, a French company, is set to acquire an outsourcing firm for $3.3 billion, but the names of the companies are not specified. This acquisition is not related to Nalanda Capital.
In summary, Nalanda Capital's strategy in India is characterised by its focus on long-term value creation through deep conviction bets and patient holding strategies. These strategies have yielded exceptional returns and demonstrate a preference for deep value creation over quick gains. The firm's recent major exits after long holding periods and its focus on managing and selectively exiting deep-held investments underscore this approach.
- Nalanda Capital's approach to investing, emphasizing long-term value creation through deep conviction bets and patient holding strategies, is evident in its investments such as Page Industries, where it has held shares for over 15 years, managing to deliver a compounded return of approximately 32% annually.
- Demonstrating its commitment to its patient and long-term private equity style approach, Nalanda Capital is currently wrapping up a significant exit, expected to net over $325 million, proving that the firm's strategy prioritizes deep value creation over quick gains.
