Bangalore-based Dynamatic Technologies Ltd is selling 11.1 per cent stake to private equity funds Fidelity Investments International, Amansa Capital Pte Ltd and New Vernon Capital for $17.75 million (Rs 75 crore). Dynamatic Technologies Limited produces engineering products for industries such as automation, aerospace, agricultural equipment and construction equipment.
Dynamatic Technologies also claims to be Asia’s largest producer of hydraulic pumps and one of the top five in the world. It also manufactures non-ferrous alloy castings at its plant in Chennai. Fidelity already holds 3.29 per cent stake in the firm through FID Funds Mauritius Ltd.
The shares of the Dynamatic Technologies, which is listed on the Bombay Stock Exchange, were placed in the form of a qualified institutional placement (QIP) at Rs 1,234 per share. At noon today, the shares of the company were trading at Rs 1,255, down nearly 3.5 per cent. The board of Dynamatic has cleared an in-principle allotment of 6.04 lakh shares to the investors to raise Rs 74.53 crore.
The Times of India reports that the company plans to raise upto Rs 160 crore, and the balance would be raised through debt. Dynamatic Technologies plans to use these funds for potential acquisitions and also expand its domestic operations. Last year it signed a deal with Spirit AeroSystems Inc’s unit Spirit Aerosystems (Europe) Ltd, to set up a metallic precision assembly for Airbus Single Aisle (A320) aircraft in India.
Fidelity Investments International, which picks up stake in listed firms, also has a 7 per cent stake in publicly-listed Transport Corporation of India. While Amansa Capital Pte. Ltd is a Singapore-based fund focused in India. New Vernon Capital, a US based fund which invests through its Mauritus arm, New Vernon Bharat, has been an actives private equity player in India.