Investment firm Kitara Capital has acquired over 5 per cent stake through market deals in Supreme Infrastructure India Ltd, a mid-sized EPC contract firm. The shares were picked up for Rs 23.78 crore on the National Stock Exchange on Wednesday.
Through its arm Kitara Piin 1101, the firm picked up 5.68 per cent stake from more than half-a-dozen selling shareholders, such as Reliance Mutual Fund. The shares of Supreme Infrastructure were bought for Rs 250 per unit.
Shares of Supreme Infrastructure closed at Rs 250.1 a unit on Thursday, down 1.98 per cent in a weak Mumbai market. At this price, Supreme Infrastructure is valued at Rs 417 crore.
The investment came soon after 3i India Infrastructure Fund invested around $61 million (Rs 302 crore) in a portfolio of BOT (build, operate and transfer) road projects owned by Supreme Infra. Considering that the investment was for a minority stake, the portfolio is valued much more than the company at the current share price.
For the first nine months of FY12, Supreme Infrastructure reported 69 per cent jump in net sales to Rs 998 crore, with net profit rising more moderately at 39 per cent to Rs 65.5 crore, compared to the same period last year. In Q3 FY12, Supreme Infrastructure added Rs 630 crore of new orders, resulting into a total order book of Rs 3,772 crore.
Kitara’s other private investments in public equities (PIPEs) include steel tube maker APL Apollo Tubes Ltd (14.98 per cent) and speciality chemicals and drug maker Vivimed Labs (13.13 per cent stake). It has also invested $11 million in Oil Field Instrumentation Ltd (OFIL), a provider of mud-logging services to oil exploration companies, and $18 million in MyTVS, a multi-brand car service network.