08 November 2024
The ongoing dual track process for Advent International-backed Manjushree Technopak is fascinatingly poised as Asia-focused private equity firm PAG has emerged as the front-runner to buy out the top packaging solutions firm even as the US private equity promoter is still considering the IPO route, multiple industry sources in the know told Moneycontrol on the condition of anonymity. To be sure, a dual track process is a deal strategy in which the owner of the firm simultaneously pursues an initial public offering (IPO) as well as a private M&A auction process till the former finalises one option based on its needs, valuations and market conditions. Manjushree Technopak, the largest rigid plastic packaging (RPP) player in terms of installed capacity in India, filed draft papers for a Rs 3,000-crore IPO in August, which is a combination of fresh issuance of Rs 750 crore worth equity shares, and an offer-for-sale (OFS) of equity shares worth Rs 2,250 crore by the promoter AI Lenarco Midco (Advent International), which holds 97.54 percent shareholding in the company. "The draft papers for the Manjushree Technopak IPO were filed more than two months back and the roadshows have begun, but now, Advent has also entered advanced discussions with PAG. Advent, which is looking to unlock value after entering the firm six years back, has evaluated both the routes for several months and will take a final call and opt for one based on desired valuations and timing, among other factors," said one of the persons above.
The ongoing dual track process for Advent International-backed Manjushree Technopak is fascinatingly poised as Asia-focused private equity firm PAG has emerged as the front-runner to buy out the top packaging solutions firm even as the US private equity promoter is still considering the IPO route, multiple industry sources in the know told Moneycontrol on the condition of anonymity. To be sure, a dual track process is a deal strategy in which the owner of the firm simultaneously pursues an initial public offering (IPO) as well as a private M&A auction process till the former finalises one option based on its needs, valuations and market conditions. Manjushree Technopak, the largest rigid plastic packaging (RPP) player in terms of installed capacity in India, filed draft papers for a Rs 3,000-crore IPO in August, which is a combination of fresh issuance of Rs 750 crore worth equity shares, and an offer-for-sale (OFS) of equity shares worth Rs 2,250 crore by the promoter AI Lenarco Midco (Advent International), which holds 97.54 percent shareholding in the company. "The draft papers for the Manjushree Technopak IPO were filed more than two months back and the roadshows have begun, but now, Advent has also entered advanced discussions with PAG. Advent, which is looking to unlock value after entering the firm six years back, has evaluated both the routes for several months and will take a final call and opt for one based on desired valuations and timing, among other factors," said one of the persons above.
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