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ChrysCapital To Invest Rs 50Cr In Pratibha Ind

11 October, 2010

Private equity major ChrysCapital is investing Rs 50 crore ($11.35 million) in Pratibha Industries Ltd, an infrastructure solutions provider in the water management and urban infrastructure space. The investment is being done through a mix of preferential allotment of equity shares and compulsorily convertible participatory preference shares (CCPPS). Van Dyck, a subsidiary of the PE firm’s latest fund ChrysCapital V, LLC, will pick up the stake.

The shares are being picked up at a price of up to Rs 92 per equity share and CCPPS of face value up to Rs 92. This price still has to be determined as per SEBI (ICDR) Regulations.

The share of Pratibha Industries closed at Rs 80.95, down marginally by 0.8%. The firm has a market capitalization of Rs 675.12 crore at this rate, with 52-week high at Rs 89.75.

Pratibha Industries is engaged in infrastructure construction and executing projects on a turnkey basis in  water transmission and distribution projects, waste water management, environmental engineering, urban infrastructure, tunnel surface transport projects, high rise buildings and airports. The firm had an order book of Rs 3,146 crore as of June, 2010.

Pratibha’s revenues stood at Rs 1,013 crore in FY10, as compared to Rs 757 crore in FY09 and Rs 479 crore in FY08. The firm net profit stood at Rs 56.5 crore in FY10, as compared to Rs 44.7 crore and Rs 34.2 crore in the previous two fiscals, respectively.

ChrysCapital has earlier invested (2003) and profitably exited (2007) IVRCL Infrastructure, which was then focused on water and sanitation segments.

Water and waste water management firms have been witnessing an increased interest from private equity investors. Delhi-based UEM Group, specialising in water & waste water collection, treatment and disposal, mopped up Rs 90 crore from India Value Fund earlier this year.

Chennai-based Aqua Designs India, a water management engineering company, raised Rs 55 crore from Peepul Capital. Concord Enviro Systems, a water management engineering company, raised $10 million from Sage Capital Funds in December 2009.


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1 Comment
Anil Kamath . 6 years ago

Another case of PIPE transaction. I think its time for a private equity fund fee structure review. Why not charge the usual mutual fund fee structure for PIPE transactions? The higher fees payable too a PE fund manager is because of extracting information inefficiency and supposedly adding value to the portfolio company. In case of a listed equity and especially like Prathiba, which is very widely covered by the research community, the ability to extract informational inefficiency is low in my opinion. Further, the ability to control the monitor the investment is restricted as it is a public company. Performance fee payable to the PE fund manager in such a case by the investors in the PE fund is very very difficult to justify. Especially since the investor has a choice to take a exposure directly in the listed company.

ChrysCapital To Invest Rs 50Cr In Pratibha Ind

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