Domestic private equity firm Subhkam Ventures has made a part exit from its five-year-old investment in MSK Projects with 1.2x net returns. Mumbai-based Subhkam, founded by Rakesh Kathotia, also owns broking entities Subhkam Stocks & Shares Ltd and Subhkam Securities.
It had invested Rs 9.8 crore to pick over 9% in MSK in August 2005 and, in October 2007, it invested another Rs 33.6 crore through the preferential route. Its average cost of purchase works out to be Rs 80/share.
On Monday, Subhkam sold 10 lakh shares or about a fifth of its total holding of 54 lakh shares in the open market at BSE. The shares were sold at Rs 179 a piece, translating into 1.23x net return on the average cost price or 1.55x on its original share purchase (first in first out principle).
Construction firm MSK Projects has been engaged in various segments of the business including roads, industrial, residential and commercial construction. Last month, Welspun group (Welspun Infratech Ltd along with Welspun Gujarat Stahl Rohren Ltd) had announced that it has struck a deal to acquire almost the entire promoter holding of around 22% and made an open offer to acquire further shares to gain majority stake for Rs 130.5 a share. The Stock has run up over 50% over the last two months.
Subhkam has sold the shares in the open market where the stock is trading at a much higher price. Subhkam’s portfolio(past and present) includes names such as Ansal Housing, Mid Valley Entertainment, Nagarjuna Construction, Sterling Holiday, Travelport and Unicon Financial. Early this year one of its portfolio companies Aqua Logistics went public after an IPO.