Oman India Joint Investment Fund, a private equity fund sponsored by Oman’s sovereign wealth fund State General Reserve Fund and State Bank of India, has sold its entire 4.28 per cent stake in Solar Industries India Ltd for around Rs 240 crore ($37 million).
This is its debut exit after it started investing in 2012. Solar Industries was its second investment in India.
The fund house sold 7,74,195 shares at Rs 3,100.42 apiece, according to bulk deals data available with the Bombay Stock Exchange. SBI Mutual Fund and Kotak Mahindra Mutual Fund bought bulk of the shares.
The Oman India fund had picked up the stake in Solar Industries in 2012 for about Rs 72 crore through a preferential allotment. The investment firm generated three-and-a-half times returns in the exit.
Founded in 1995, Nagpur-based Solar Industries – formerly Solar Explosives Ltd – makes a range of explosives and detonators as well as specialty chemicals. It has manufacturing facilities at 16 locations in India and two plants in Africa. The company is developing manufacturing facilities to cater to the European market.
Shares of Solar Industries were trading 12.8 per cent higher at Rs 3,499 apiece late Tuesday afternoon in a weak Mumbai market.