New Delhi, June 11 -- The Oman India Joint Investment Fund (OIJIF), a private equity firm set up by the sovereign wealth fund Oman Investment Authority (OIA) and the State Bank of India (SBI), has sold part of its stake in an Indian financial services company that it backed more than six years ago with lukewarm returns on its bet.

The mid-market PE firm, which was set up in 2011 and deployed $330 million raised through its two funds in 19 companies, divested a 3% stake in Capital Small Finance Bank for about Rs 36.8 crore ($3.8 million) via open market transactions, stock-exchange data show.

This comes a little more than two years after OIJIF and another PE firm, Amicus Capital, sold part of their stakes in the lender as part of the company's initial public offering. OIJIF garnered Rs 39.16 crore in the IPO.

Capital SFB's shares have slumped almost 40% since the IPO. The shares were trading around Rs 277 apiece on the BSE on Thursday. The steep drop has dragged down OIJIF's returns on its investment.

OIJIF had invested Rs 84.34 crore in the lender in November 2019 and picked up a stake of less than 10%. The partial exit in the IPO brought down its stake to 7.43% while helping it score a multiple on invested capital of 1.8x and an internal rate of return (IRR) of about 15.6%, VCCircle estimates show.

However, it logged a multiple on invested capital of barely 1x in the latest partial exit and its IRR was just about 1% in rupee terms, according to VCCircle estimates based on the first-in, first-out methodology. That's far below the minimum 20% IRR that private equity firms typically chase at the fund level in local currency.

Overall, the PE firm has harvested about Rs 76 crore from Capital SFB so far. This takes its overall realised IRR to nearly 6%, the estimates show.

OIJIF retains a stake of a little more than 2.5% in the lender after the latest transaction. This is worth around Rs 31.8 crore at current stock prices. Amicus Capital owned a 3% stake in the lender as of March 31, 2026.

OIJIF launched its first fund in 2011 with a corpus of $100 million. The fund invested in seven mid-sized companies across sectors such as industrials, agrochemicals, financial services, and consumer retail. These included defence electronics company Indus Teqsite, explosives maker Solar Industries, and ING Vysya Bank.

The second fund, launched in 2017, had a corpus of $230 million. It invested in 12 companies and has already monetized eight of them, including four full exits and four partial exits.

It has fully exited home furnishing company Stanley Lifestyles, life insurance firm PNB Metlife, building materials company Prince Pipes, and jewellery retailer Senco Gold. It has partially exited auto components company Divgi TorqTransfer Systems, Capital SFB, microlender Annapurna Finance, and Strides Pharma Science Ltd. The remaining four are ShopKirana, HomeLane, Crompton Greaves Consumer Electricals, and DCB Bank.

The PE firm is now on the road to raise its third fund with a target corpus of $300 million.

Also read: Oman-India PE firm's second fund tops debut vehicle's returns as it taps LPs again

Published by HT Digital Content Services with permission from VC Circle.