Metmin Investments is part exiting its five-year-old investment in PE-backed Tecpro Systems Limited with 7x returns (based on the upper end of the price band of Rs 340-355). Tecpro, that is also backed by Avigo Capital besides Credit Suisse, Kotak Mahindra Capital and Macquarie Asia Pacific Co- Investment Fund LP, is into installation of conveyor systems and manufactures equipments like crushers, screens, feeders, conveyor components like idlers and pulleys besides structural steel fabrication.
Metmin’s average cost of acquisition is pegged at Rs 51.25 per share. Credit Suisse and Kotak Mahindra invested at Rs 240 per share and are sitting on unrealised gains of around 50% in their three-year-old investments. Last year Macquarie Asia Pacific Co- Investment Fund LP also acquired shares from the promoters at Rs 240 a piece.
This is the second attempt to go public for Tecpro that had earlier filed its draft three years ago to raise around Rs 100 crore. This time the issue size has been more than doubled with one of the financial investors looking to cash out partly with meaty profit.
Tecpro is looking to raise up to Rs 268 crore of which Rs 222 crore will go to the company as part of fresh issue of shares. Unlike the last time, when it planned to use the funds to set up design and engineering center besides plant to manufacture conveyor belts in addition to enhancing working capital, expanding existing manufacturing units and equity investment in group firms, this time it intends to use the money solely for funding working capital requirements.
SBI Capital Markets Limited and Kotak Mahindra Capital Company Limited are the Book Running Lead Managers for the offer.