Standard Chartered Mid-Market Mid-Cap Fund has invested $10 million in Pune-based Innoventive Industries Ltd, which manufactures precision tubes and tube-based auto components, sources close to the development said.
Chandu Laxman Chavan-led Innoventive Industries Limited, formerly Arihant Domestic Appliances Ltd, is a multi-product company catering to automobile, energy, oil and general engineering sector. The company received its first round of PE funding from Lighthouse LLC. The PE firm has William Sean Sovak as Nominee Director in Innoventive.
Standard Chartered Mid Market-Mid Cap Fund Managing Director Rahul Raisurana did not respond to a VCCircle query at the time of posting this article. A VCCircle email query sent to Mahesh Bagla, Company Secretary of Innoventive, to confirm the deal remained unanswered at the time of posting the story.
Established in 1991 for manufacturing of domestic appliances, the firm was taken over by a group of first generation technocrats under the leadership of Chandu Laxman Chavan in 2002. In October last year, Innoventive filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise Rs 250 crore. The company is planning to utilise the funds for the expansion of its existing capacity at Pimple Jagtap in Pune and repayment of loans and general corporate purposes. Axis Bank and Avendus Capital are the book running lead managers to the issue.
According to the DRHP, the company’s consolidated revenue increased from Rs 371.09 crore in FY09 to Rs 425.15 crore in FY 10. Profit after tax increased from Rs 14.14 crore to Rs 27.72 crore during this period.
The Rahul Raisurana-led StanChart Mid-Market-Mid Cap Fund has invested $10.62 million (Rs 50 crore) in Gurgaon-based PI Industries Ltd, an agri-input and fine chemicals company, engaged in the production of agrochemicals, seeds and specialty fertilizers, for 5.23% stake. It has also invested in constrution firm Man Infraconstruction, which was listed last year.
Another fund under management by StanChart PE, led by Nainesh Jaisingh, invested $50 million in Coffee Day Resorts & Hotels Ltd, a wholly-owned subsidiary of Amalgamated Bean Coffee Trading Co. Ltd for a 5% stake last year.