**Tessolve Semiconductor Explores Minority Stake Sale for Growth Capital**
Bengaluru-based Tessolve Semiconductor Pvt. Ltd is currently in discussions with several global private equity firms, including Apax Digital, TPG, and Primerica, to sell a minority stake aimed at raising growth capital. Sources familiar with the matter indicate that these firms are interested in acquiring a 30-40% stake in the semiconductor services company, which is valued at approximately $300 million.
As of now, due diligence is underway, and binding bids are expected to take some time. Jefferies, a global investment bank, has been engaged to assist Tessolve in this capital-raising endeavor. The funds are intended to facilitate inorganic growth, expand into new categories, and enhance the company’s geographical reach. Tessolve is actively seeking a private equity partner to support its growth initiatives.
Tessolve Semiconductor is predominantly owned (70%) by Hero Electronix, a subsidiary of the Hero Group based in Delhi, and is led by Suman Kant Munjal, managing director of Rockman Industries. The company is currently generating an annual operating income of around $20-25 million (Ebitda) and is targeting a valuation of approximately 17-18 times its Ebitda. Tessolve anticipates an annual growth rate of 20-25% over the next few years. In FY24, the company reported a consolidated Ebitda of ₹130.81 crore.
In 2021, Tessolve raised $40 million from Singapore-based Novo Tellus Capital Partners at a valuation of $100 million, which was utilized for acquisitions and expansion efforts.
Founded in 2004 by a group of technology entrepreneurs and acquired by Hero Electronix in 2016, Tessolve specializes in providing semiconductor IC design, testing, product engineering, PCB design, failure analysis, and systems design to leading global semiconductor companies. The company has also hinted at the possibility of an initial public offering (IPO) in the next few years, with plans to expand its operations in India.
In FY24, Tessolve achieved net sales of ₹1,020.70 crore and is projected to grow by 20% in FY25, driven by increasing demand in the Indian market.
**FAQ**
*What is Tessolve Semiconductor’s primary business focus?*
Tessolve Semiconductor specializes in semiconductor IC design, testing, product engineering, and related services for global semiconductor companies.
