Sequoia Capital India has picked up an additional 1.46 per cent stake in packaging firm Ess Dee Aluminium Ltd from the open market. The venture and growth capital investor has now increased its stake to over 6.3 per cent in the Mumbai-based Ess Dee, which makes packaging materials used by pharmaceutical companies. The latest round of share purchase was done for Rs 11.27 crore.
The shares in Ess Dee were picked up for Rs 239.98 per unit on the NSE on Friday. The share price of Ess Dee was trading at Rs 236.6, up 2.11 per cent, on Tuesday at 11:57 am.
Sequoia had initially picked up 1.87 per cent stake in Ess Dee in January this year, at a share price of Rs 448 per unit. Since then, it has increased its stake to 4.88 per cent as of June, 2011, and is currently the largest institutional shareholder. With the recent dip in the share price of Ess Dee, Sequoia now seems to be averaging its investment.
The revenues of Ess Dee went up 29.2 per cent to Rs 760 crore, with EBITDA at 204 crore and net profit at Rs 140 crore in FY11.
Ess Dee is headed by first-generation entrepreneur Sudip Dutta who holds 59-60 per cent stake in the firm. Current investors in the company include ICICI Prudential Life Insurance, Orange Mauritius Investments and Blackstone’s India Fund, among others.