Private equity major ChrysCapital is looking to almost double its stake to over 11% in Pratibha Industries, a company that focuses on design, engineering and construction of water related infrastructure projects. The private equity firm picked 6.3% early this month under a qualified institutional placement (QIP) and has struck a separate deal to invest another Rs 50 crore through preferential allotment of shares and compulsorily convertible participatory preference shares.
This will allow Pratibha Industries to raise capital afresh after scooping up Rs 100 crore through the QIP this month.
ChrysCap will invest by subscribing to securities worth Rs 50 crore at a price of upto Rs 92 a piece, which is 17% more than the last traded price. At the current price ChrysCap’s holding will rise to over 12% while at Rs 92 a share it will increase to 11.4%.
With the fresh allotment, ChrysCap’s exposure in the company will double to Rs 100 crore as it picked half of the shares allotted in the QIP. This is yet another infrastructure firm in which the private equity firm is betting fresh money.
ChrysCap raised its stake in Gammon India to 9% by investing around Rs 60 crore (~$13 million) through open market purchase recently. The private equity firm had invested in the company through bottom fishing in the second half of 2008 when stock market valuations were close to their recent lows. The private equity firm is estimated to have put in around Rs 196 crore ($42 million) in total in Gammon India till date.
Pratibha Industries is trying to diversify its business in other segments beyond water related project to become a broader infrastructure firm having a presence in road, retail, urban, oil and gas transmission and power segments.
Other investors in Pratibha Industries include India Investment Partners, London-based fund manager that set up in 2005 and manages international funds invested in Indian listed as well as unlisted companies.