Renuka Ramnath makes her first deal

Former ICICI Venture boss Renuka Ramnath, who set up on her own, has completed her first private equity deal.

Ramnath had floated Multiples Private Equity Fund (MPEF) and launched its fund of Rs 450 crore. The company is now ready to enter into an investment agreement with Sara Sae Pvt Ltd and its promoters for a significant minority stake to fund the buyout of 76 per cent held by National Oilwell Varco in the company.

MPEF will also invest in fresh shares issued by the company to fund its capital expenditure and acquisition strategy. The total investment by the Funds is expected to be approximately Rs 108 crore.

Sara manufactures high quality equipment such as BOP accumulators, hydraulic tongs, swivel joints and hammer unions for the global upstream oil drilling sector at its plants in Dehradun and Faridabad. Sara has marquee customers, including National Oilwell Varco, FMC Ltd and ONGC to name a few and has a sales-cum-warehouse setup in Houston, USA. Sara Sae’s exports account for more than 85 per cent of the turnover of the company.

Sara is managed by V K Dhawan, co-promoter, and his two sons Samir and Sumit. In August 2007, National Oilwell Varco, a global drilling equipment company, has acquired a 76 per cent stake in the company. According to sources close to the deal, Sara fits in completely with Multiples’ investment philosophy of backing proven entrepreneurs with products and services which can match the best global standards. However, MPEF spokesperson was unavailable for comments.