Clearwater Capital has hiked its stake in Diamond Cables by purchasing 2.2% stake for around Rs 10 crore through the secondary market which takes its total holding to 13.77%. Originally an electrical products maker, the company has diversified into a manufacturer of power transmission equipment and turnkey services provider (EPC).

The latest share purchase by Clearwater has been at a price of Rs 160 a piece, more than twice its average cost of purchase till date. It had originally invested at a price of Rs 95 in 2006-07 and thereafter at Rs 151 through separate convertible instruments which, after the bonus issue, works out to cost of acquisition of Rs 62 a piece. Its current holding is worth Rs 60 crore.

The company, that has now renamed itself as Diamond Power Infrastructure Equipment, also counts among its investors KSK Emerging India Energy Pvt Ltd. Currently it commands a market cap of Rs 423 crore or a tad below $100 million.

For the quarter ended December’09, it had net sales of Rs 210 crore with net profit of Rs 13.9 crore. The company has among its board members Amit Gupta (Partner and Co-Founder at Clearwater Capital Partners) besides Jayshree Krishna- director at Clearwater Capital Partners India.

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