Private equity firm Clearwater Capital Partners is converting instruments held by it in diversified player Oricon Enterprises Ltd, which has interests in areas like real estate and logistics. Mumbai-based Oricon Enterprises will allot equity shares in the company, which will translate into a 10.63 per cent stake on a post-dilution basis.
Clearwater Capital Partners Singapore Fund III Pvt Ltd had invested Rs 35 crore in Oricon (formerly Oriental Containers) through fully convertible debentures (FCDs). According to Oricon’s Wednesday closing price of Rs 310.40 per share, Clearwater would be nearly doubling the value of its investment at Rs 68 crore.
Besides, Elara Capital also held a 4.87 per cent stake in Oricon on account of Clearwater Capital as of March 31, 2011. The combined holding would be just short of 15 per cent trigger point for a mandatory open offer in a public listed company.
Oricon’s scrip was trading at Rs 307.95 at 2:12 pm today, down slightly by 0.8%. While the shares of the company are currently trading near the 52-week low of Rs 296, the share price has peaked at Rs 420 over the past 12 months.
Oricon has a presence in varied businesses like real estate, marine logistics, auto dealership (exclusive Toyota dealership in South Mumbai), packaging and petrochemicals. The company has merged two companies – Zeuxite Investments and Naman Tradevest – to bring the real estate and marine logistics business under its fold.
Zeuxite holds stake in United Shippers Ltd, which is engaged in the business of lighterage, stevedoring and logistics. It counts among its strategic investors Enam Group, Oxbow Coal of the USA, Logiscor Ltd and Italy’s Coeclerici Logistics S.P.A. Oricon is also developing a real estate project in Mumbai.
Its packaging business operates under Oriental Containers Ltd, a joint venture with Navigate Mauritius Limited (an arm of Navis Capital Partners), with customers like Coca-Cola, Pepsi, United Spirits, Hindustan Unilever Ltd.