Ashish Dhawan led ChrysCap is strengthening its clout in the public equity market, a further indication of getting increasingly away from the conventional private equity role.The private equity firm which has been quite active in the secondary market in India like any other FII, has increased its investments in construction firm Gammon India.
A large chunk of shares(1 million) were acquired by Warhol, an investment arm of ChrysCap, in a block deal from HDFC Mutual Fund last week.
Apparently, ChrysCap added some more shares to its kitty and as per disclosures now holds 5.77% of Gammon India. The PE firm had in July picked around 4.5% in Gammon India from JP Morgan, at a price of Rs 220 per share. The latest bulk deal with HDFC Mutual Fund was struck at a price of Rs 165 per share translating into a deal worth Rs 16.5 crore or $3.5 million(at current exchange rates). This brings down the average cost of acquisition for ChrysCap somewhat.
But that doesn't help too much. The stock is currently trading at Rs 140 after dropping 15% over the last one week and is trading close to its one year low of Rs 130. The global selloff in the equity market has not spared Gammon India scrip which is down 36.6% over the price one month back.
ChrysCap has been active in the PIPE market and has over the last one year picked shares in Ahmednagar Forgings, Hexaware, Amtek India, Amtek Auto, HCL Technologies, Infosys and Cadila Healthcare to name a few.
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