The private equity arm of Zurich-based Credit Suisse has sold its holding of 9.11% in Binani Cements to Stansen Holdings. Stansen has bought the all the shares of Ganesha Prime Holdings (Mauritius) Ltd, an entity of Credit Suisse. The Swiss banking major bought a 11% stake in Binani Cement for Rs 149.65 crore in 2006 at a price of around Rs 73 per share. Binani Cements closed at a price of Rs 33.7 at the end of trading today.
No details of Stansen are known, what is known is that its a Singapore based fund. The valuations or the price at which the deal was not struck is not known as its a change in holding. The exit for Credit Suisse would come at a time when valuation are at an all time low. Though not known to be related, Credit Suisse has also nearly lost $1 billion in $50 billion fraud scheme of Bernard Madoff. Another exit in recent times was Merrill Lynch selling its 5% stake in financial services firm Religare Enterprises, making a return of about 72% despite the weak markets.
Binani went for an public issue last year, in which it divested 2.05 crore equity shares of Rs 10 each within the price band of Rs 75-85. JP Morgan Special Situations, which held a 25% stake, divested a 10% stake in the issue. Binani Group is planning investment of Rs 1,300 crore investments in cement and zinc. Binani has raised Rs 450 crore through a consortium of six banks, including IDBI and Punjab National Bank. It is planning to set up a 2-million tonne cement manufacturing plant.