WestBridge Capital picks stake in AIA Engineering for $24M

Private equity firm WestBridge Capital has picked around 2.83 per cent stake in Ahmedabad-based engineering components maker AIA Engineering for around Rs 144 crore ($24 million) through open market transaction on Friday.

This marks third fresh investment by the PE firm since January this year after artificial leather maker Mayur Uniquoters and snacks maker DFM Foods.

It also comes as the first new investment in the industrials space after WestBridge picked shares of another Ahmedabad-based firm Astral Poly Technik Ltd, a manufacturer and marketer of CPVC piping and plumbing systems.

AIA Engineering manufactures and designs engineering components for various industries such as cement, mining and thermal power generation. The company also provides services for installation of high chromium wear and corrosion and abrasion-resistant parts used in these industries. According to its website, AIA is the second largest hi-chrome casting producer in the world.

The company saw revenues rise over 26 per cent to Rs 526 crore for the quarter ended December 31, 2013 with net profit rising by a similar percentage to Rs 66 crore over the year-ago period. AIA Engineering reported revenues of Rs 1,751 crore with net profit of Rs 210.8 crore.

Nalanda Capital is an existing investor in the engineering firm and held around 8.4 per cent stake as of December 31, 2013. It had started buying shares of AIA back in early 2011 and slowly hiked its holdings.

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