Clearwater Capital sheds over half its stake in Jamna Auto for $11.5M

Private investment firm Clearwater Capital Partners has part-exited its nine-year-old investment in Jamna Auto Industries Ltd, selling more than half of its stake in the Delhi-based auto component maker.

Clearwater Capital, which first invested in Jamna Auto in 2006 through a preferential allotment of shares, has divested a stake of about 15.76 per cent in the company for around Rs 76.6 crore ($11.5 million) through open market transactions.

The private equity firm, which does both PE-style equity deals as well as debt transactions, sold this stake in various tranches over the past three weeks, data available with the stock exchanges showed.

As of September 30, the PE firm held a 28 per cent stake in Jamna Auto through its two funds Clearwater Capital Partners (Cyprus) Ltd and Clearwater Capital Partners Singapore Fund III Pvt Ltd. Following the stake sale, Clearwater Capital's stake in Jamna Auto has come down to about 12.2 per cent.

An emailed query to a spokesperson for Clearwater Capital seeking further information did not elicit any response by the time of filing this article.

Founded in 1954, Jamna Auto makes suspension products and lift axles for medium and heavy commercial vehicles. It also makes different kinds of springs for vehicles and claims to have a market share of about 60 per cent.

Shares of Jamna Auto last traded at Rs 126.60 each, up 0.9 per cent in a weak Mumbai market on Monday.

For Clearwater Capital, this would be the fifth liquidity move from a portfolio firm in India this year. In July, it part-exits Diamon Power Infrastruture by selling a 2.03 per cent stake for $801,700 (Rs 5 crore). Prior to that, it exited Hyderabad-based GSS Infotech Ltd by selling all its holding in the company.

In February, the PE firm sold a 1.76 per cent stake in wind turbine maker Suzlon Energy Ltd. And the month before, it part-exited its investment in Mumbai-based Oricon Enterprises Ltd by selling a stake of about 4.4 per cent.

Last year, Clearwater made three known part-exits from its Indian portfolio. These were from pharmaceutical products maker Lyka Labs Ltd, marine operation and construction company Dolphin Offshore Enterprises Ltd, and electrical equipment maker Diamond Power Infrastructure Ltd, according to VCCEdge, the data research platform of VCCircle.

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