Citigroup Venture Capital International (CVCI), the the private equity arm of Citigroup, has partially exited its investment in Techno Electric & Engg Company Ltd. Kolkata-based Techno Electric is an engineering, procurement and construction (EPC) firm focused on the power sector. In a block deal on Tuesday, CVCI sold a 4.96% stake in the firm for a total amount of Rs 20.38 crore.
The deal was struck at a price of Rs 72 per share on the Bombay Stock Exchange. CVCI continues to hold a nearly a 5.5% stake in the firm, which is worth Rs 20-22 crore going by current market capitalisation.
Techno Electric was named as one of the ‘200 Best under a Billion’ list for the Asia-Pacific region by US magazine Forbes. The company’s client list includes Reliance Energy, NTPC, Power Grid, BHEL, MSEB and BSES.
CVCI invested in Techno Electric in October 2006 in a deal in which five of its executives also invested, including former chief Ajay Relan. Others were current India head PR Srinivasan, Vinayak Shenvi, Jayanta Basu, and Vivek Chhachhi.
CVCI invested a total amount (including executives) of Rs 68.64 crore into the company through both equity shares and convertible warrants.
Since then Ajay Relan and Jayanta Basu have left CVCI to form their own private equity outfit, CX Partners, which is currently raising $750 million India-focused fund.
CVCI has also managed to exit considerable part of its stake through bulk deals in January 2008. Through two bulk deals struck at Rs 300 and 257.5 per share on National Stock Exchange, the private equity fund netted a total of Rs 79.96 crore. Including Tuesday’s deal, it has so far made a total of Rs 100.34 crore on its Rs 68.64 crore investment.
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