Baring Private Equity Partners India (Baring PE India) has hiked its stake in Vardhman Textiles Ltd (VTL), by acquiring an additional 1.1 per cent stake for Rs 25.1 crore ($4.1 million) through open market transaction on Tuesday.
It bought 0.76 million shares at a price of Rs 327.92 each on the NSE, taking its holding in the textile firm to 3.15 per cent.
Baring PE India has been slowly building its stake in the company for the last year or so and with the latest investment it is estimated to put in a total of over Rs 56 crore to buy shares of VTL.
VTL, a part of the Vardhman Group and one of the top integrated textile companies in the country, has presence in the Indian textile sector through manufacturing of fibre, yarn, sewing thread and fabrics and is one of the top yarn firms by capacity.
Formerly known as Mahavir Spinning Mills, it generates 60 per cent of its total income from yarn products; within the yarn products, the focus is on non-commoditised products. It generates 23 per cent from fabrics, 8 per cent from fibre and 9 per cent from sewing threads. Over one-third of its revenues come from exports.
VTL and its subsidiaries have 20 manufacturing facilities across India and employ close to 25,000 people.
For FY13, the company posted revenues of Rs 5,021 crore with an EBITDA of Rs 1,024 crore and PAT of Rs 356 crore.
It also has subsidiary companies like Vardhman Yarns & Threads Ltd (VYTL), Vardhman Acrylics Ltd (VAL), VMT Spinning Co Ltd (VMT), VSS Ltd and VNG Co Ltd. Of these, VAL and VSS are also listed firms.
Shares of VTL were trading at Rs 341 per share, up 3.51 per cent in a strong Mumbai market on Wednesday.
Baring PE India has previously also built a small stake in Vardhman Holdings, a separately listed holding firm of the SP Oswal-led Vardhman Group, which owns around a quarter of VTL.
(Edited by Joby Puthuparampil Johnson)