Warburg Pincus, the holder of 91.96% stake in Stellar Value Chain Solutions, is seeking to exit the third-party logistics company after a period of being associated with them for 7 years. In 2016, Warburg Pincus invested USD 125 million in the company. The remaining stake in Stellar is held by the founder and others.
According to sources, it will be a complete sale with the investor and founders exiting the company, and larger logistics services providers in the country have been approached. Investment bank Rothschild has been appointed by the investor to find strategic and financial investors.
Stellar Value Chain Solutions is a supply chain services company, founded by Anshuman Singh, offering multi-user warehousing, primary and secondary distribution, e-fulfilment and cold storage. The company’s clientele is made up of users from across sectors like food and beverages, fast moving consumer goods (FMCG), consumer durables, electronics and hi-tech, lifestyle, automotive, pharmaceuticals and engineering industries.
For the financial year ended 31 March 2022, the company earned a total revenue of INR 400.7 crore against INR 308.7 crore in the previous fiscal. It incurred a loss of INR 182.9 crore in FY22 against INR 134.6 crore in the previous year, VCCEdge data shows.
In 2018, Stellar had acquired Kolkata-based Innovative Logistics Services Pvt. Ltd and before that it had acquired a majority stake in Kelvin Cold Chain Logistics for an undisclosed amount in 2017.
For Warburg Pincus, which has been investing in the Indian market for over two decades now, 2022 will see a slew of partial and full exits from its older investments. According to VCCEdge, Warburg trimmed its stake in Kalyan Jewellers by selling one tenth of its 26.36% stake in the jewellery chain last month. This partial exit comes after a full exit from multiplex chain PVR.