Ess Dee Aluminium shares skyrocket after PE investor exits

The shares of Ess Dee Aluminum, the Mumbai-based company which is into packaging industry, have shot up about 20% on Monday, following an exit of private equity investor Sequoia from the company. 

On Monday, shares of Ess Dee were closed at Rs 170.85, up 19.31% on Bombay Stock Exchange. It is learnt that Sequoia has suffered a loss of about 60% through the stake sale. 

Sequoia Capital, through its investment arm- Ironwood Investment Holdings, sold 2.09 million shares at Rs 135 per share on Friday at Bombay Stock Exchange and National Stock Exchange. The shares were sold for about Rs 285 crore. According to BSE, Sequoia was holding 2.17 million shares by June 2012.

Sequoia Capital had been increasing stake in Ess Dee since 2011 and the stake went up to 6.77% by September 2011. Sequoia picked up stake when Ess Dee shares were trading in Rs 240-450 range.

Sudip Dutta, chairman of Ess Dee Aluminium holds about 58.2% stake in the company. Other investors in the company include ICICI Prudential Life Insurance (3.63%) and Orange Mauritius Investments (2.05%).

Rs 630-crore Ess Dee Aluminium Ltd is a leading supplier of packaging materials and into the business of manufacturing and marketing Aluminium foils and polyvinyl film-based packing products for the pharmaceuticals industry.