Private equity fund MCap is acquiring 15.6 per cent equity stake in Kanpur-based Ganesha Ecosphere Ltd through a preferential allotment for around Rs 34 crore (over $5.5 million), as per a stock market disclosure.
The board of directors of the listed company has proposed to raise the fund through issuing 3.1 million Compulsorily Convertible Preference Shares (CCPS) convertible within 12 months into 2.75 million equity shares and 250,000 warrants with the option of conversion of each warrant into one equity share at a price of Rs 114 per share to Mcap.
On full conversion of both CCPS and warrants into equity Mcap will own 15.6 per cent stake of the diluted equity base.
Meanwhile, Ganesha Ecosphere also said that it is planning to raise Rs 100 crore (around $16.5 million) through private placement, qualified institutions placement (QIP) and/or securities convertible into equity shares and/or securities linked to equity shares and/or securities with or without detachable share warrants and/or bonds with share warrants attached, secured or unsecured.
Founded in 1987, Ganesha Ecosphere—formerly Ganesh Polytex Ltd—is engaged in the recycling of post consumer pet bottle waste into recycled polyester staple fibre. The firm offers greige and dyed, texturised, doubled and twisted yarns for knitting and weaving applications.
As on June 30, 2014, promoters of Ganesha Ecosphere held 46.74 per cent stake in the company.
Multi-stage PE firm MCap, which is investing out of a reported $60 million corpus of its debut fund, has previously made a string of public market investments through secondary market share purchases.
Its public market portfolio include names like private lender City Union Bank, FMCG firm Jyothy Laboratories and APL Apollo Tubes, a New Delhi-based manufacturer of steel pipes and tubes.
The PE firm floated by former Baring Private Equity India partner Subbu Subramaniam, has also picked up a small stake in Kochi-based electrical appliances manufacturer V-Guard Industries.
It also invested in privately held Chennai-based Omkar Clean Energy Services Pvt. Ltd.
(Edited by Joby Puthuparampil Johnson)