GEI Industrial Systems Ltd, a manufacturer of aircooled heat exchangers and condensers, is buying the compulsorily convertible debentures (CCDs) held by BanyanTree Growth Capital LLC in its power subsidiary GEI Power.
GEI Industrial said in a filing that it has acquired 1000, 5 per cent compulsorily convertible debentures (CCDs) of face value of Rs 1 lakh, totalling Rs 10 crore from BanyanTree Growth Capital LLC.
When contacted, a BanyanTree executive termed the transaction as a partial exit without providing further details. While declining to comment on specific return from this investment, he said that BanyanTree structures its deals typically with 3x return.
BanyanTree is a $100 million structured private equity fund whose recent investments include Jaipur-based NBFC Esskay Auto Finance and infrastructure firm Dilip Buildcon Ltd.
GEI Industrial Systems Ltd acquired 82.17 per cent stake for Rs 13 crore in GEI Power in August 2009 followed by Rs 10 crore investment from BanyanTree in October the same year.
BanyanTree has also invested in GEI Industrial Systems before betting on its subsidiary. It currently holds a 9.99 per cent stake in the firm.
Last year, Aditya Birla Private Equity Fund also invested Rs 62.5 crore in the firm through a mix of compulsory convertible preference shares and equity convertible warrants.
For the first nine months of FY12, GEI Industrial reported a 15.68 per cent increase in consolidated total income to Rs 288.53 crore with consolidated net profit slipping over 30 per cent to Rs 15.71 crore.
The shares of GEI Industrial closed at Rs 122.05, up marginally by 0.37 per cent on Friday when NSE slipped 1.16 per cent.