Private equity firm Wayzata Investment Partners has further reduced its shareholding in carbon and low-alloy steel forgings manufacturer Ramkrishna Forgings Ltd by selling another 2.11 per cent stake in the company through open market transactions, as per a stock market disclosure.
Wayzata, which had invested in the firm in early 2013 through a mix of preferential allotment and stake buy from Ascent Capital, sold 6,06,050 equity shares, comprising 2.11 per cent stake, in Ramkrishna Forgings between September 15 to November 14,2014, for an estimated Rs 15 crore (nearly $2.4 million).
Post the latest transaction, Wayzata continues to hold around 11.08 per cent stake in the Kolkata-based company, which is currently worth Rs 98 crore.
It remains the single-largest institutional investor in the public listed firm which is also backed by IFC. As on September 30, 2014, the World Bank’s investment arm IFC held 7.82 per cent stake in Ramkrishna.
It had started pulling out from its investment in September with a quick churn of its portfolio with high returns.
Founded in 1981, Ramkrishna Forgings manufactures and sells open and closed plain carbon and low-alloy steel forgings for railways, automobile and general engineering purposes. The company went public 10 years ago.
Shares of Ramkrishna Forgings closed at Rs 307.95, down 0.96 per cent on the BSE in a flat Mumbai market on Tuesday.
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)