Private equity firm Halcyon Resources and Management Pvt. Ltd has decided not to go ahead with its deal to buy 20% stake in Ahmedabad-based brokerage Anagram Ltd. Halcyon had bought an 18 month option in 2007 to buy stake at an enterprise valuation Rs 165 crore,
which lapsed in December 2008, reports Mint. Anagram is owned by the promoters of garment manufacturer Arvind Ltd, the Lalbhai Group.
Halcyon’s deals in the bull market were done using convertible instruments and options so as to protect itself against a downside. Munesh Khanna, a managing director with Halcyon, became an executive chairman with Anagram post the deal in 2007. Since then Khanna has quit the private equity firm to form his own investment banking outfit, Resonus Advisors.
A lot of brokerages raised private equity funding during the boomtime in 2007 and early 2008 but are now bleeding due to the market crash.
Halcyon has also invested $8 million in Delhi-based SSIPL Retail Pvt. Ltd, a franchisee for global brands such as Nike and Levi’s. This deal was done using optionally convertible preference shares. Another investment is an unnamed sugar company. Halcyon has so far invested $20 million out of its $300 million fund.