Kuwait-based multi-family office investment firm Markab Capital WLL has announced acquisition of a controlling stake in Chennai-based architectural, design and build turnkey solutions provider Uniply Industries Ltd. The offer values the company at an enterprise value of over Rs 1,550 crore on a fully diluted basis.
Markab Capital and its wholly-owned Indian subsidiary, Markab India SPV Pvt Ltd, have acquired 20.7 per cent shareholding from the promoter, Keshav Kantamneni, and his group entities at Rs 82 per share, a premium of nearly 28 per cent on the price of the shares of the company as on closing of trading hours on July 3, 2019. Kantamneni will retain a 7 per cent stake in the company and continue in a key functional support role, according to a company statement. Markab Capital has made an open offer to public shareholders at a price of Rs 82 per share, for 49,466,068 fully paid up equity shares at a facevalue of Rs 2, constituting 26 per cent of emerging capital of Uniply for a consideration of Rs 405.62 crore.
The transaction aims to leverage the deep global relationships of Markab and create long-term value for shareholders of the company by bringing value and margin accretive global contracts to Uniply, it added. With this, Markab Capital is entering into the Indian building solutions market. Uniply has grown from a plywood manufacturer to an integrated building solutions provider in the last five years.
Ahmad Al Omani, Chairman of Markab, said, “It is a one-of-its-kind investment opportunity and I’m confident that we will bring enormous business value for Uniply from our extensive global relationships and portfolio companies. Markab is of the firm belief that India is at the cusp of a large investment drive into higher quality living standards and Uniply is uniquely positioned to capitalise on this opportunity.”
Keshav Kantamneni, chairman of Uniply said “Markab brings to the table a wealth of investment experience with small and mid market companies around the world. Their hands-on approach to investing and a proven track record of growing businesses will help strengthen the framework of growth at Uniply.”
Markab Capital WLL, a multi-family office investment firm based in Kuwait, London and India, provides private equity as well as mezzanine and bridge debt to mid-sized businesses around the globe. Its current fund has made 16 investments totaling an investment value of over Rs 4,250 crore around the world.
Uniply is an integrated architectural, design and build turnkey solutions provider in the Residential and Commercial sectors. The company offers an entire gamut of services from architectural design and build, mechanical, electrical, plumbing, interiors, and furniture. Uniply, headquartered in Mumbai has presence across major Indian cities such as Delhi, Pune, Bangalore, Chennai, Hyderabad and Ahmedabad. The company also has international presence in Dubai and Malaysia.