Tamil Nadu-based Sakthi Sugars Ltd is issuing equity shares to a fund managed by Apollo Alternative Assets, an affiliate of global private equity major Apollo Management.
Sakthi Sugars, a South India-based sugar maker, is issuing shares in the company upon conversion of foreign currency convertible bonds (FCCBs) issued on May 15, 2006. Apollo Asia Opportunity Alpha (Mauritius) Ltd, which is registered as a foreign institutional investor (FII), will get less than a 1% stake for FCCBs worth $1 million.
Sakthi is engaged in the manufacturing of sugar, industrial alcohol, generation of power and processing of soya beans. It was founded in 1961 and is based in Coimbatore, Tamil Nadu. The shares of Sakthi were down by more than 3.5% today at 2:45 PM, trading at Rs 94 per share. Others like JP Morgan Mauritius Holdings, Third Avenue Global Value (Master) Fund, Goldman Sachs, Morgan Stanley and Deutsche Bank have also converted FCCBs in Sakthi.
Apollo Asia Opportunity is an Apollo-sponsored fund focused on debt and equity investment opportunities in Asia in both the public and private markets. The firm recent made its debut private equity deal in India by investing $100 million in direct to home satellite TV company Dish TV.