Private equity firm Trinity Capital has sold just over 1% stake in SKIL Infrastructure-owned Pipavav Shipyard in the open market for Rs 58 crore with the expiry of the one-year lock-in period for PE investors.
Trinity has made over 3.2x on its investment made in January 2007. Trinity still holds an over 3% stake in the firm which is worth Rs 167 crore at yesterday’s closing price of Rs 83.4.
Other private equity firms like New York Life Insurance, Indus Capital, Standard Chartered Private Equity and Citadel could also be looking at an exit following the expiry of the lock-in period.
The PE firm’s arm Trinity Capital (Nine) Ltd sold 7.2 million shares on the Bombay Stock Exchange at Rs 80.4 in a single bulk deal on Thursday. This is against the acquisition price of Rs 25 per share, when Trinity had invested a total sum of Rs 115 crore for a 6.9% stake. Trinity had also tendered shares worth Rs 115 crore in Pipavav
during the open offer in July this year (which was an exception to lock-in).
The open offer ensued after Punj Lloyd sold its 19.43% in Pipavav Shipyard to its partner SKIL Infrastructure for Rs 656.4 crore ($145 million). SKIL’s stake increased to around 40% after acquiring Punj Lloyd’s holdings. Pipavav Shipyard also recently raised $40 million (Rs 177.80 crore) from PE firm Valiant by issuing compulsorily and
mandatorily unsecured convertible debentures.
Pipavav Shipyard reported revenues of Rs 629 crore for FY10 with a loss of Rs 49 crore. The first quarter of FY11 the firm reported revenues of Rs 176 crore with a loss of Rs 9.8 crore.