Oman India Joint Investment Fund scores exit from Solar Inds
Oman India Joint Investment Fund, a private equity fund sponsored by Oman’s sovereign wealth fund State General Reserve Fund and State Bank of India, has sold its entire 4.28 per cent stake in Solar Industries India Ltd for around Rs 240 crore ($37 million).
This is its debut exit after it started investing in 2012. Solar Industries was its second investment in India.
The fund house sold 7,74,195 shares at Rs 3,100.42 apiece, according to bulk deals data available with the Bombay Stock Exchange. SBI Mutual Fund and Kotak Mahindra Mutual Fund bought bulk of the shares.
The Oman India fund had picked up the stake in Solar Industries in 2012 for about Rs 72 crore through a preferential allotment. The investment firm generated three-and-a-half times returns in the exit.
Founded in 1995, Nagpur-based Solar Industries – formerly Solar Explosives Ltd – makes a range of explosives and detonators as well as specialty chemicals. It has manufacturing facilities at 16 locations in India and two plants in Africa. The company is developing manufacturing facilities to cater to the European market.
Shares of Solar Industries were trading 12.8 per cent higher at Rs 3,499 apiece late Tuesday afternoon in a weak Mumbai market.
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Oman India Joint Investment Fund is a $100 million private equity fund managed by Oman India Joint Investment Fund - Management Co. Pvt. Ltd. It provides growth capital to companies operating in India and Oman. The fund seeks to invest in oil and fertilizers, education, healthcare, hospitality, retail, pharmaceutical, chemicalreal estate, information technology, tourism, and infrastructure sector. It typically invests $10 million and $15 million in its portfolio companies. The fund operates as a 50:50 joint ventures between State General Reserve Fund (SGRF) of Oman and State Bank of India.
Solar Industries India Ltd. (formerly known as Solar Explosives Ltd.) is explosives and initiating devices manufacturing company. It offers slurry and emulsion base explosives, bulk explosives and cartridge explosives, accessories, including solar detonators, aluminum emulsion explosives detonators, copper emulsion explosives detonators, and copper delay detonators, solar cord detonating fuse; cast boosters, such as solarcast, pentaerythritol tetranitrate, and specialty chemicals. The company was founded in 1996 and is based in Nagpur, Maharashtra.