Asset management firm Duke Equity has made yet another part exit from Mumbai-based Lime Chemicals with a 84% haircut. The loss-making calcium carbonate maker has revenues of around $10 million.
Duke had invested Rs 1.93 crore in late 2005 through a preferential allotment at Rs 43 a piece, a price it only marginally exceeded in 2006 and has been trading at much lower levels ever since. Duke had picked over 14% stake in the chemicals firm.
Duke had earlier exited partly between January-March’08 when the markets crashed after hitting a peak in January. Given the prices at that time, the investor would have suffered almost 60% loss in principal amount.
It sold a large chunk of shares between July-September’09 when markets had picked up but Lime Chemical was trading almost 88% below investment price. With the latest part sale, Duke has sold almost three-fourths of its holding in Lime with an average loss of around 80-85% on a four-and-half-year-old investment.
Other portfolio companies of Duke in India include Geodesic, Micro Technologies, Visesh Infotecnics, Autoline Inds and Rathi Steel & Power among others. It has investments in both listed companeis as well as privately-held small and mid-sized firms.