Singapore-based NRI family led Kewalram Chanrai Group has sold over one-third of its holding in Chennai-based IT products distributor Redington (India) Ltd through secondary market transactions on Monday.
Harrow Investment Holding (formerly known as Redington Mauritius Ltd) that held 13.33% stake in Redington as of March 31, 2016, sold 5% stake of the firm for Rs 219 crore ($32.7 million).
The buyers included a fund managed by Fidelity besides domestic mutual funds and insurance companies.
Redington, which went public in 2007, is backed by Standard Chartered Private Equity which owns 11.2% stake. Redington also counts US-based global IT products distributor Synnex as a strategic shareholder. Indeed, Synnex is the single-largest shareholder with 23.58% stake.
Founded in 1961 as G Kewalram Pvt. Ltd, Redington India forayed into the distribution of IT products in the 1990s. The company then augmented its footprint into distribution of telecom products to tap the increasing demand for mobile handsets. It is one of the largest resellers of Apple iPhones.
The promoters have been looking at selling their stake for several years and earlier were in talks with Japan's Itochu. However, the deal hit a roadblock due to differences over valuation.
The promoters, however, kept on diluting their holding in small lots through market sale.
Two years ago, Redington had sold its non-banking finance company (NBFC) subsidiary Easyaccess Financial Services Ltd (Easyaccess) to the promoters. This NBFC was set up in 2008 to help finance channel partners in the distribution network.
Redington's net sales rose 12.2% to Rs 31,554.8 crore with net profit rising 10% to Rs 425.6 crore for the year ended March 31, 2016.
Apple's proposal to go ahead with launching its own stores has affected investor sentiments about the future growth of the company.
Redington scrip declined 8.41% to end at Rs 101.85 a share on BSE on Monday.
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