Samena Special Situations Fund has increased its stake in engineering firm Dynamatic Technologies Ltd by picking up over 1.1 per cent stake in the company for Rs 9.3 crore on Friday. According to its annual report dated April, 2011, the fund managed by Samena Capital already holds 7.2 per cent stake in the firm and this deal will take it to more than 8.3 per cent.
Samena Capital had started picking up stake in the company last year, with its initial buy of 5.2 per cent at a cost of $8 million. Since then, it has upped its stake to 7.2 per cent with an average entry price of Rs 1,227.8 per share and a total of Rs 48 crore. With the current stake buy at Rs 1549.65 per share, its cumulative investment stands at over Rs 57 crore and the firm is sitting at profit.
Samena Capital is a fund which invests in listed companies through market purchases and fresh issues of equity. It is currently raising its second fund, targeting a final close of .
The share price of Dynamatic was trading at Rs 1,519, down 1.56 per cent at 11:55 am on Monday morning. The stock is currently trading near its 52-week high of Rs 1,580 per share, with a market capitalisation of Rs 820.26 crore.
Dynamatic reported 13 per cent increase in total income to Rs 501.3 crore in FY11, with net profits more than doubling to Rs 10.5 crore.
Dynamatic, which operates in automotive and aerospace business segments, has recently announced demerger of the two units. Its automotive component business has come under its subsidiary JKM Erla Automotive Ltd, which acquired German automotive component maker Eisenwerke Erla Gmbh from the Sanmar Group earlier this month. Eisenwerke Erla GmbH generates revenues in excess of €100 million (Rs 647 crore) between its two units located in Germany and India.
Dynamatic Technologies, established in 1975 as an auto component supplier, is one of Asia’s largest gear pump manufacturers. In hydraulics, it has over 80 per cent market share in the domestic tractor market, and is a key global supplier to John Deere, Cummins and Hyundai. Dynamatic had also expanded into aerospace structure component development and in 2008, acquired Oldland CNC Ltd, a high-end precision engineering company engaged in the manufacturing of aerospace components and tooling. Their clients in the aerospace segment include Airbus and Boeing.
Dynamatic is also looking to tap the Indian defence sector as it opens up for private participation and has opened a new facility in western India to cater to the industry.