Everstone Capital to buy 25% in HR outsourcing firm Aparajitha Corporate Services

MUMBAI: Everstone Capital, one of the largest India-focused private equity funds, is acquiring a stake of about 25% in a tier-two HR outsourcing firm, Aparajitha Corporate Services, for an estimated Rs 100 crore, valuing the Madurai-based company at around Rs 400 crore, according to people involved with the matter. Over the last few years, marquee foreign investors have diversified their Indian portfolios, pumping growth capital into tier-two entrepreneurial stories.

Founded by Bharath Krishna and Nagaraj Krishnan more than a decade ago, Aparajitha today has a national presence with a 400-strong client list comprising corporates like Hindustan Unilever, Siemens and Nokia, among others. The HR services firm focuses on labour compliance, establishment compliance, auditing, flexi staffing, payroll processing consultation and providing legal opinion, specializing in both state and central labour legislation.

Aparajitha, with over 1000 staff, competes with some of the bigger players like Aon Hewitt in offering consulting and outsourcing services. Everstone Capital could not be reached for comments immediately, while Krishnan of Aparajitha declined to comment.

Deloitte Corporate Finance advised on the deal.

Founded in 2006 by ex-Goldman Sachs investment bankers Atul Kapur and Sameer Sain, Everstone Capital has been investing heavily in the Indian consumption story. The fund with a corpus of $2 billion under management recently joined hands with American burger biggie, Burger King, for its India entry. Some of its other significant investments include Blue Foods, Nashik Vintners, the holding company of Sula wine, and VLCC Healthcare which operates in the fitness, health and beauty category.