Monsoon Capital has picked 3.8% in Karuturi Global Ltd by converting the warrants subscribed last year into equity. Monsoon had picked 20 million warrants as a part of a consortium of investors who together subscribed to 241.5 million warrants (including 34.2 million warrants picked by the promoters led by Ramakrishna Karuturi) at a price of Rs 12 each translating into investment commitment of Rs 24 crore.
Karuturi shares are trading at Rs 17.7 at present or almost 50% more than the warrant issue price. Both the promoters and Monsoon Capital have converted their warrants.
Other investors who were part of the consortium include Emerging India Focus Funds (60 million warrants), Elara India Opportunities Fund (61.05 million) and India Focus Cardinal Fund (66.14 million). Monsoon Capital’s holding will shrink a bit after all the warrants are converted.
In total the investors committed infusion of Rs 288 crore in the agri business firm. As per norms investors need to pay 25% of the total money at the time of warrants issue and rest at the time of conversion into equity.
The four overseas funds (excluding an additional fund under Monsoon Capital) will together hold a 29.82% stake in the post-issued capital of flower exporter Karuturi Global. The shares converted from warrants have a lock-in of one year.
The world’s largest producer of roses is engaged in three businesses – floriculture, gherkins and information technology. The company reported consolidated revenues of around Rs 550 crore with net profit of Rs 153 crore for the fiscal ended March 2010. The promoter group held 26.7% stake as of March, 31.