Redington dilutes 12% stake in StanChart PE arm

Redington India Ltd promoters and strategic investors have diluted their stake by 12 per cent to Standard Chartered Plc’s private equity arm and to an institutional investor.

The transaction was estimated to be around Rs 416 crore. The company is now planning to accommodate the PE investor in the company’s 10-member Board.

In a telephone interview with Business Standard from Singapore, R Srinivasan, managing director, Redington India said: “Our company has always been a management-run company and to reiterate this philosophy the two major shareholders have brought down their respective holdings to below 26 per cent.”

Accordingly Synnex Mauritius, a unit of Synnex Technology International Corp, a strategic investor in Redington, has diluted four per cent stake of the 27.71 per cent, which the company held in Redington. Similarly, Singapore-based promoters have diluted eight per cent stake. It was sold by Chanrai Investment Corp, which owns Redington Mauritius, he said.

Bombay Stock Exchange bulk data shows Redington Mauritius sold 3,04,80,673 shares at Rs 91.90 and Synnex Mauritius sold 1,58,95,000 shares at the same rate. The buyers include Standard Chartered Pvt EQ Mauritus Ltd (3,97,36,500 at a rate of Rs 91.89 each totaling to around Rs 364 crore) and ECL Finance Ltd (79,50,000 shares at Rs 91.90 each), a NBFC and operates as a subsidiary of Edelweiss Capital Ltd.

As on March 31, 2011 the promoters were holding 28.89 per cent, foreign institutional investors (FIIs) were holding 31.16 per cent, NRIs/foreign nationals/ investors 28.49 per cent. Public 3.48 per cent, Bodies corporates 5.14 per cent and others 0.28 per cent.