Wayzata Investment Partners sells additional shares in Ramkrishna Forgings

Private equity firm Wayzata Investment Partners has sold some additional shares in carbon and low-alloy steel forgings manufacturer Ramkrishna Forgings Ltd by selling another 2.06 per cent stake in the company through open market transactions, as per a stock market disclosure. 

The PE firm held these shares through its fund Wayzata II Indian Ocean Ltd and sold 5,91,403 shares between November 17 and December 5, 2014, for an estimated Rs 18.4 crore. 

Wayzata, which had invested in the firm in early 2013 through a mix of preferential allotment and stake buy from Ascent Capital, had sold over 6 lakh equity shares, comprising 2.11 per cent stake, in Ramkrishna Forgings between September and November this year for an estimated Rs 15 crore (nearly $2.4 million). In a span of three months, the PE firm has sold over 4 per cent stake and post the latest transaction, Wayzata continues to hold around 9.02 per cent stake in the Kolkata-based company, which is currently worth Rs 84.2 crore.

It continues to be the single-largest institutional investor in the public listed firm followed by World Bank’s investment arm IFC. As on September 30, 2014, IFC held 7.82 per cent stake in Ramkrishna Forgings.

Founded in 1981, Ramkrishna Forgings manufactures and sells open and closed plain carbon and low-alloy steel forgings for railways and for automobile and general engineering purposes. The company went public 10 years ago.

Shares of Ramkrishna Forgings closed at Rs 325.9 each, down 4.33 per cent on the BSE in a flat Mumbai market on Monday.

Wayzata is focused on the manufacturing sector in India having backed companies like SH Kelkar (manufacturer of fragrances and flavours), Topack Fittings (maker of steel products), Biltube Industries (paper packaging products) and Phthalo (chemical manufacturer).

(Edited by Joby Puthuparampil Johnson)

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