Deutsche Bank Buys 20% In Cylinder Maker

03 February, 2009

German banking major Deutsche Bank is picking up a 20% stake Mumbai-based Rama Cylinders for Rs 84 crore. Rama is a high-pressure cylinder manufacturer and the deal values the company at Rs 420 crore, reports Economic Times.

The deal involves issue of around 60 lakh equity shares and warrants to Deutsche Bank. While the bank would buy 45 lakh shares in Rama Cylinders, the remaining stake would be bought over after conversion of around 15 lakh warrants into equity shares.

There has been some private equity interest in this space before. Mumbai-based Everest Kanto Cylinders  raised $22.5 million from two private equity funds, TVG Capital Partners and CLSA Private Equity Management, in 2007. The company is a listed entity and makes cylinders for industrial, medical and CNG industry. Everest Kanto presently has a market capitalisation of around Rs 1,340 crore.

Rama Cylinders was incorporated in 2004 and is promoted by Vashu J. Ramsinghani. The company has an installed capacity of 300,000 nos. /year of high pressure seamless steel cylinders and allied products such as vessels, accumulators etc. It manufactures high-pressure

seamless cylinders, seamless pressure vessels and seamless accumulator shells. The cylinders manufactured are used for medical gases, beverages, scuba diving, etc.

The company exports its cylinders to countries like Iran, Pakistan, Bangladesh, Thailand, Russia, Malaysia, Armenia, Russia, and also to major automobiles OEMs Such as Tata Motors & Bajaj Auto. 

 


Leave Your Comment
News Roundup: Deutsche Bank Buys 20% Stake in Rama Cylinders

News Roundup: Deutsche Bank Buys 20% Stake in Rama Cylinders

TEAM VCC 5 years ago
Deutsche Bank Buys 20% Stake in Rama Cylinders – Deutsche Bank is buying 20% stake in Rama Cylinders, a Mumbai-based high-pressure cylinder manufacturer, for Rs...
News Roundup: Falguni Nayar Quits Kotak, To Start Own Venture

News Roundup: Falguni Nayar Quits Kotak, To Start Own Venture

TEAM VCC 1 year ago
Falguni Nayar Quits Kotak, To Start Own Venture – Falguni Nayar, managing director of Kotak Mahindra Capital Company (KMCC), and the face of Kotak’s investment...
IFC Invests $120 Million In Polycab Wires

IFC Invests $120 Million In Polycab Wires

Pallavi S 9 years ago
International Finance Corp (IFC), the private equity arm of the World Bank, is upping its deal sizes. In what would be amongst its biggest private equity...
No Comments

Deutsche Bank Buys 20% In Cylinder Maker

Powered by WordPress.com VIP