Hedge fund house Galleon Group LLC, whose Sri Lankan co-founder Raj Rajaratnam is under investigation for insider trading charges in the US, has started liquidating assets in India. Galleon has exited its investments in engineering firm Shriram EPC by selling its remaining 2.3% stake through a bulk deal transaction at NSE on Thursday.
Galleon held 4.6% in Shriram EPC as of June end and has sold 0.95 million shares or around half of its holdings Special Opportunities Master Fund at a price of Rs 223 cumulating to Rs 21 crore ($4.5 million). The shares were acquired by Indea Long Term Opportunities Fund.
In late September, Galleon had sold its 2.3% stake to private equity firm Argonaut Venture for around Rs 18.5 crore at about Rs 185 per share. Shriram SPC scrip shot up 12% today after news of Galleon’s exit. Existing PE investors in Shriram EPC include New Vernon India and Bessemer Venture Partners.
Galleon’s current portfolio of listed companies in India include Edelweiss Capital (which also has investments from Sequoia and Greater Pacific Capital) where Galleon holds 7% stake through two separate funds valued at around Rs 267 crore ($56 million). Edelweiss scrip after shooting up over 5% is trading at same price as yesterday.
Galleon also holds a small stake in Pipavav Shipyards, an Indian shipbuilder that got listed early this month. Galleon also has indirect investments through its exposure in private equity funds such as New Silk Route (NSR). NSR and Galleon have also co-invested in some firms such as Reliance Infratel.