Praj Industries hikes stake in water treatment subsidiary Neela Systems to 70%

Engineering firm Praj Industries Ltd has raised its holding in its water treatment subsidiary Neela Systems by acquiring additional 10 per cent stake for Rs 20.4 crore ($3.2 million), as per a stock market disclosure.

Post acquisition, the firm holds 70 per cent stake in Neela Systems at an approximate cost of Rs 96.90 crore, spread over tranches.

Last September, the firm acquired 9.8 per cent stake in Neela Systems for Rs 12.49 crore. Prior to that in January 2012, it had picked 50.2 per cent stake in Neela Systems for Rs 64 crore.

Founded in 1989 by Himanshu Shah, Mumbai-headquartered Neela Systems designs and manufacturers water treatment systems, and caters to pharmaceutical, bio-pharmaceutical, food & beverage, cosmetics and healthcare industries. It has a manufacturing facility at Wada, Mumbai.

Pune-headquartered Praj provides ecofine distillation, ecomol dehydration and waste water treatment solutions to alcohol ethanol plants and offers technology, plants and services for biodiesel production. It also provides engineering, design, technology and project services, as well as agro energy consultancy services.

It is backed by ace stock investor Rakesh Jhunjhunwala, venture capitalist Vinod Khosla, Norwegian sovereign wealth fund and Tata Capital.

Last year in October, Praj divested its entire stake in Brazil-based Praj Jaragua Bioenergia SA for an undisclosed amount. In March 2010, it had sold its entire stake in Praj Schneider Engineering Inc for an undisclosed amount. Praj Schneider was acquired in November 2006 for $5 million.

Praj’s scrip closed at Rs 38.25 a share, up 0.26 per cent on BSE in a strong Mumbai market on Thursday.

(Edited by Joby Puthuparampil Johnson)

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