Private equity major ChrysCapital has nearly completed exit from Jamshedpur-based JMT Auto Ltd, cutting over 90 per cent of its stake over last two weeks. The PE firm has sold 4.02 million of 4.3 million shares, or approximately 27 per cent stake in the company for over Rs 46 crore.
ChrysCapital still holds around 2.6 per cent stake which would be worth around Rs 4 crore as per current market prices. This would mean ChrysCapital is making a total Rs 49-50 crore on the investment, which would translate into gains of 20-25 per cent.
Buyers of shares include FII investors LTS Investment Fund and Hypnos Fund.
ChrysCapital, through its entity Bach Ltd, sold 1.49 million shares or little over 10 per cent stake for Rs 19.2 crore through block deals last week. ChrysCapital invested in the auto components firm in 2006.
The scrip of JMT closed at Rs 106.5 on Friday, up by 1.33 per cent, giving the firm a market capitalisation of Rs 153.36 crore. The shares of JMT have slipped from Rs 130 levels since ChrysCap started selling last week.
ChrysCapital had picked up 26.5 per cent stake in JMT for Rs 35.5 crore at Rs 100 per share and subsequently made an open offer.
ChrysCapital’s stake sale comes after auto components major Amtek Auto Ltd signed a share-purchase agreement with the promoters of JMT to acquire their entire 51.2 per cent stake for around Rs 110 crore in June this year.
Amtek also made an open offer for additional 26 per cent stake at Rs 149 per unit, which started on September 2 and closed on September 16.
(Edited by Joby Puthuparampil Johnson)