facebook-page-view
Advertisement

IFCI VC Picks 10% In Ganesh Polytex

By Pallavi S

  • 21 Jan 2011

IFCI Venture Capital Funds is picking 10% stake in Ganesh Polytex, a small-sized firm engaged in the business of recycling consumer PET bottle waste into recycled polyester staple fibre (RPSF), for about Rs 13.5 crore ($ 2.9 million).

IFCI Venture Capital is investing this amount to subscribe to optionally convertible debentures at a price of Rs 90 each, 30.8% premium to the last traded price of Ganesh Polytex on Thursday. The company’s scrip was up 3.13% in mid-day trade after the disclosure of new investment.

Post conversion, it would own 10% of the expanded equity capital. IFCI Venture Capital will be investing through its Green India Venture Fund which has a corpus of Rs 330 crore for investing in companies engaged in clean development mechanism. The investment managers look to invest anywhere between Rs 2-30 crore in a single deal.

Advertisement

It has three firms in its portfolio including inverter maker Luminous Teleinfra, De Core Science & Technologies which is into semiconductor and lighting business besides Innovative Modular Machines that makes battery-powered solar electric rickshaws. Ganesh Polytex will be the fourth investment by this particular fund.

Kanpur-based Ganesh Polytex, with consolidated production capacity of 5.76 lakh tonnes per annum is the largest player in the recycled PSF industry. Incorporated in 1987, the firm started commercial production during 1988 to produce dyed & doubled yarn near Kanpur and in 1995 diversified into the business of manufacturing recycled PSF through recycling of post-consumer pet bottle waste using Korean technology.

It set up a new plant in 2006 at Rudrapur (Uttrakhand). Production in this unit started in two phases  that was completed in September’08. It further expanded the capacity which was commissioned in March, 2010. For the year ended March’10, the company had revenues of around Rs 200 crore with net profit of Rs 9 crore.

Advertisement

Share article on

Advertisement
Advertisement