Private equity giant Blackstone Group has increased its shareholding to 3.89 per cent in Monnet Ispat, one of India’s largest manufacturers of integrated coal-based sponge iron. The shares were purchased for Rs 64.47 crore on the Bombay Stock Exchange and the National Stock Exchange.
This comes after last week Blackstone had picked up 1.87 per cent stake for Rs 60 crore in Monnet Ispat, run by the Jajodias. Blackstone had invested Rs 275 crore (approximately $60 million) in a subsidiary of Monnet Ispat in the power generation space last year.
Shares of Monnet Ispat closed at Rs 496, marginally up 0.61 per cent. The shares were purchased by Blackstone at the closing price from Swiss Finance Corporation (Mauritius), which held 2.62 per cent stake, as of June end.
The deal is probably the first instance of Blackstone buying into a company through market deals. It has invested in listed companies like Allcargo Global, Nagarjuna Construction and Gokaldas Exports during 2007-08. But the PE firm has stayed away from listed firms, post-financial meltdown of September, 2008.