After a long spell of inaction, the $2.25-billion private equity fund ChrysCapital seems to be back on track with a PIPE deal. The Delhi-based private equity fund has acquired a 7 per cent stake in a city based auto component manufacturer Amtek Auto for Rs 229 crore from foreign portfolio investors in the company such as Citigroup, CLSA and Copthall. The shares were transferred through six block deals on the BSE and NSE and ChrysCapital has bought over 9.3 million shares.
The stake has been acquired in the form of P-Notes by a Mauritius based entity of ChrysCap. The average share price of the transaction comes to Rs 246 per share. The company stock was trading at Rs 229 today, up by 5.38 per cent. The 52 week high of the company stock is Rs 526.
Other foriegn funds including Warburg Pincus, Deutsche Bank, Merrill Lynch, Macquire Bank, Swiss Finance Corporation and Oppenheimer Funds own stake in the company. HDFC also has a 7.45 per cent holding in the company through its various companies.
The promoters, led by the Dham family, currently hold more than 40 per cent in the company, compared to 34.3 per cent as on March 31, 2008, reports The Economic Times.
Amtek Auto manufactures automotive components and assemblies at its production facilities spread across North America, Europe and Asia. Recently Amtek Auto was reported to be close to acquiring Frankfurt-based SM Castings, a supplier of light metal casting products for the automotive industry. Amtek has captured a 40 per cent market share in western Europe.
Last year the company had acquired UK-based rival Triplex-Ketlon Group for about $40 million. Some other acquisitions in Europe include UK-based GWK and Lloyds Brierly Hill and Germany-based Zelter. The company is planning to consolidate its position in the European market.
There are several firms in current investment portfolio ChrysCapital which are involved in logistics supply and logistics finance. Companies in logistics supply include- Balkrishna, a niche low-cost tyre manufacturer; JMT Auto, an auto component manufacturer; Parksons, a manufacturer of folding paperboard cartons and Titagarh Wagons (TWL), a freight wagon manufacturer.
The companies in the logistics finance segment include – Bajaj Auto Finance, financing high yield categories as 2-wheelers, consumer durables and personal loans; Mahindra Finance, focused on providing finance for utility vehicles, tractors and cars and Shriram Group, which finances truck and consumer durables.