New Delhi, Aug. 21 -- Singapore state investment firm Temasek intends to sell part of its stake in another Indian company, extending its monetisation momentum after pulling out almost $600 million from its local portfolio so far this year.

Temasek, one of the most active private equity-style investors in India, has sold or agreed to sell stakes in at least six Indian companies over the past couple of months and set the stage to monetise its investments from another five companies. It is now adding a 12th company to the list.

The investment firm plans to sell about 12.25 million shares, or more than a tenth of its stake, in Atomberg Technologies Ltd through the consumer appliances maker's initial public offering.

Atomberg has filed a draft red herring prospectus for an IPO that includes a fresh issue of Rs 450 crore and an offer for sale of 76.54 million shares by Temasek and five other investors including venture capital firms A91 Partners and Jungle Ventures.

Temasek owns a total of about 18.8% stake in Atomberg via two entities. The entity that is taking part in the IPO had invested about Rs 366 crore in Atomberg via primary and secondary transactions in June 2023 and owns 11.8% of the company. The other entity joined the cap table last year after investing almost Rs 320 crore.

Atomberg hasn't yet disclosed its IPO pricing or target valuation. However, a secondary transaction earlier this year valued the company around Rs 5,100 crore. This would value Temasek's entire stake around Rs 960 crore (almost $100 million), translating into a 1.4x multiple on invested capital.

The entity that is selling in the IPO is sitting on a 1.6x multiple and an internal rate of return (IRR) of about 16-17% in rupee terms, according to VCCircle estimates. Its unrealised IRR in dollar terms is around 11% given the rupee's depreciation. While that's lower than the minimum 20% IRR in rupees and 15% in dollars that private equity investors typically chase in local currency, sovereign wealth funds may follow a lower benchmark.

Temasek's actual returns would be higher if Atomberg prices its IPO above the level at which the secondary transactions were struck, given its high growth trajectory. The company's revenue from operations jumped 35% in the year through March 2026 to Rs 1,294 crore, though its net loss widened by almost 27% to Rs 149 crore.

Exit spree

Temasek has struck deals to make partial or full exits from six Indian companies since early July. It made a partial exit from PB Fintech Ltd, the company behind insurance-tech venture Policybazaar, scoring a double jackpot and sold a third of its stake in eyewear retailer Lenskart for nearly $200 million (Rs 1,924 crore).

Temasek, along with Indian private equity firm True North, also struck a deal to sell their entire stake in Indian drug formulations maker Integrace Pvt Ltd to US buyout firm Warburg Pincus. Temasek is likely to have taken a haircut from Integrace. It wrapped up July with a small exit move from CarTrade Tech Ltd.

In August, Temasek sold part of its stake in Manipal Health Enterprises Ltd through the hospital operator's IPO and then joined TPG in selling a stake in Dr Agarwal's Health Care with benchmark-beating returns.

Overall, Temasek has harvested around Rs 5,700-5,750 crore (about $600 million) from these exits, according to VCCircle estimates.

In addition, three Temasek-backed companies have floated IPOs this month-Shiprocket, Milky Mist Dairy, and Molbio Diagnostics. While Temasek itself didn't sell any stake in these companies during the IPOs, their listing opens up a liquidity window for the investment firm.

Moreover, Temasek intends to monetise its bets on fitness chain Cult.fit and the National Stock Exchange as they head for public listings in coming months. Both have filed draft documents for their IPOs.

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