SAIF Partners raises stake in Speciality Restaurants, buys 3.2% more

Multi-stage investor SAIF Partners has increased its holding in fine dining chain operator Speciality Restaurants, buying approximately 3.2 per cent from the markets on Monday. SAIF Partners picked up the stake from Glix Securities, another pre-IPO investor for Rs 18.74 crore. 

With this purchase, SAIF holds 13.84 per cent stake in Speciality Restaurants, whose brands include Mainland China and Oh! Calcutta. 

Scrip of Speciality Restaurants was trading at Rs 124.5, up 1.47 per cent in mid-day trades on Tuesday. 

Through SAIF India IV FII Holdings, the PE firm picked up 1.5 million shares at Rs 124.99 per unit.

The move comes as shares of the company have slipped below its IPO price band of Rs 146-154 over the last few quarters. The company had raised Rs 177 crore in its maiden offering last year, after which its share price reached over Rs 218. 

The company diluted 25 per cent stake in the issue. While the shareholding of SAIF Partners came down to 10.64 per cent after the issue, Glix held 3.67 per cent. With the current sale, Glix will hold around 0.5 per cent stake. 

Glix Securities had invested Rs 15 crore in May 2010 at an average price of Rs 87.18 per share, which would give it a 43 per cent gain  in the current sale. SAIF Partners, which invested Rs 35.5 crore in the company in 2007, had an average acquisition price of around Rs 70 per unit and is sitting on unrealised gains of 77 per cent on its original investment. 

Speciality Restaurants reported a 15.7 per cent increase in revenues for first six months of FY14 at Rs 124.15 crore, even as its net profit fell 23 per cent to Rs 8.77 crore compared with the same period last year.

Mainland China still contributes a majority of the company’s revenues at 62 per cent followed by 10 per cent each from Sigree and Oh! Calcutta. The remaining comes from other brands like Flame & Grill, Machaan, Haka and Sweet Bengal.

The company has been looking to expand its presence in the quick service restaurant (QSR) space, and is also eyeing acquisitions.

(Edited by Joby Puthuparampil Johnson)

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