Bennett Coleman & Company Ltd is one smart cookie.
In 2016, Faasos Food Services Pvt. Ltd issued three-year warrants to BCCL for Rs 16 crore. Early this year, the company exercised those warrants. (A warrant is a financial instrument that gives one the right to buy, or sell, a security at a certain price within a specific period.) And now, about six months later, BCCL is selling its stake in the company in a secondary transaction. It has appointed an investment banker which has started pitching to high-net-worth individuals, and family offices.
Three industry executives and investors we spoke with said that BCCL is selling at a significant discount. Not surprisingly, suitors are lining up, hoping to buy into a company which was last valued at $800 million. If we were to put a number to it, BCCL’s investment in Faasos—renamed Rebel Foods Pvt. Ltd in 2018—of Rs 16 crore stands at about Rs 60 crore today, three years on. (Correction: An earlier version