| ChrysCapital, the India-focused private equity fund, is understood to have partly exited Shriram EPC with returns of around four times over its investment in this company within just under three years.
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| According to information available, ChrysCapital during early 2005 had come in at close to Rs 70 per share and is understood to have partly exited around Rs 290 a share in favour of the US-based PE player Argonaut Partners. No comments were available from ChrysCapital and Argonaut.
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| Shriram EPC, a part of the diversified $4 billion Shriram Group, is involved in design, engineering, procurement, construction and project management services.
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| The company is also a manufacturer of 250 KW wind turbine generator.
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| Other private equity investors in the company include UTI Ventures and Bessemer Venture Partners.
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| ChrysCapital recently announced the establishment of its fifth and largest fund, ChrysV at $1.25 billion, which has participation from 75 global investors. With this, ChysCapital now has under its management over $2.25 billion, making it the largest India focused private equity fund. Argonaut on the other hand has $2 billion under management.
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| Shriram EPC presently has a topline of around Rs 300 crore with an order book position of around Rs 2,000 crore. Nearly 75 per cent of its revenue comes from engineering construction contracts, with sales of wind turbines and other businesses contributing the rest.
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| ChrysCapital is shedding its stake in the firm at a time when Shriram EPC is set for a public issue. The company proposes to issue 5 million equity shares of Rs 10 each for cash at a price to be decided through a 100 per cent Book-Building Process.
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| The issue will constitute 11.66 per cent of the fully-diluted post-issue paid-up capital of the company. Shriram EPC plans to primarily invest the proceeds of the Issue in its subsidiary and associate companies and fund purchases of plant and equipment for pipe rehabilitation projects. |
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