BIH SA, one of the pre IPO investors in financial services firm Edelweiss has hiked its holding to 5.9% through a block trade in the market. The investment firm, believed to be a Swiss fund, which had been holding on to its 1.4 million odd shares since the IPO, has bought more shares since September 30. The seller could not be ascertained immediately.
BIH held 1.87% in Edelweiss post equity dilution in the IPO that came in December 2007. BIH had picked shares through a complex preferential allotment besides convertible shares and secondary buy from another pre IPO investor. As per VCCircle estimates it spent Rs 30-35 crore for the original set of transactions which was struck at an average price of Rs220-250/share.
It is estimated that it would have spent close to Rs 150 crore in buying the additional stake with the average cost of buying the new shares over two times what BIH spent in the company before the IPO. With the latest stake purchase it has spent over Rs 180 crore translating into average cost of acquisition of around Rs 410.
Edelweiss scrip closed at Rs 474 down 3.1% at BSE on Wednesday, giving BIH unrealised gain of 15%.