The world's largest hedge funds, Citadel, has sold a 2.06% stake in SKIL Infrastructure-owned Pipavav Shipyard for Rs 103.8 crore in the open markets. The bulk deals on BSE and NSE helped the fund recover its principal investment back on its three-year-old investment. The exit follows stakes sales by Trinity Capital and 2i Capital in Pipavav, which has long list of private equity investors.
Citadel had picked up the stake at Rs 45 per share in early October 2007, investing a total of Rs 103.5 crore. At the current stake sale at Rs 75.5 per share, the firm has made an 1.67x returns on its investment. The Kenneth C. Griffin-founded hedge fund still has around a 1.4% stake in the company.
The share price of Pipavav were up by 4.9% at noon today, trading at Rs 82.40.
Reports suggest that other investors like New York Life Insurance, Indus Capital, Standard Chartered Private Equity and IL&FS could also be looking at an exit following the expiry of the lock-in period earlier this month.
Pipavav Shipyard also recently raised $40 million (Rs 177.80 crore) from PE firm Valiant by issuing compulsorily and mandatorily unsecured convertible debentures. Pipavav Shipyard reported revenues of Rs 629 crore for FY10 with a loss of Rs 49 crore. The first quarter of FY11 the firm reported revenues of Rs 176 crore with a loss of Rs 9.8 crore.