Standard Chartered Private Equity (SCPE) has acquired another 2.84 per cent stake in Innoventive Industries Ltd, a multi-product engineering company. The private equity firm has picked up the shares from open market, increasing its stake in the company from 6.98 per cent to 9.82 per cent. The share acquisition, done during August and September, might have cost SCPE around Rs 13 crore-Rs 16 crore, according to VCCircle estimates.
Standard Chartered PE had picked 10.14 per cent stake (on a pre-issue share capital basis) in the Pune-based company through a mix of share purchase from non-promoters, besides a fresh issue of shares in February this year. Incidentally, StanChart’s Mid-Market-Mid Cap Fund had invested Rs 46 crore in total and with the current transaction, its exposure will go up to nearly Rs 60 crore.
Innoventive has raised around Rs 220 crore through the public issue, which will be used for capacity expansion (Rs 163 crore) and term loan repayment (Rs 50 crore). The company was listed in May this year at an issue price of Rs 117 per share but has been trading between Rs 80 and Rs 100 per share ever since. On Monday, Innoventive’s shares were trading at Rs 85 per unit, up 3.79 per cent on the BSE at 12:31 pm. The share price of the firm closed at Rs 88, up over 7.45 per cent.
Established in 1991 for manufacturing domestic appliances, the firm had been taken over by a group of first-generation technocrats under the leadership of Chandu Laxman Chavan in 2002. Currently, Innoventive (formerly Arihant Domestic Appliances Ltd) is a multi-product engineering company focused on precision steel tubes and value-added steel products (including boiler steel strips), as well as oil well couplings (through its subsidiary). The company’s product range caters to diverse industrial sectors including transportation, oil & gas, power, farm equipment and general engineering.
Chandu Laxman Chavan-led Innoventive received its first round of PE funding from Lighthouse LLC. Lighthouse Funds, through its arm Kavos Capital, is still the largest institutional investor in the company with 13.48 per cent stake. The PE firm has William Sean Sovak as the nominee director in Innoventive.
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