Private equity firm ChrysCapital has increased its stake holding in Mumbai-based infrastructure solutions provider focusing on water management and urban infrastructure space Pratibha Industries Ltd, a flagship company of the Pratibha Group, by acquiring additional 3.64 per cent stake through open market transaction.
The PE firm has acquired around 3.7 million equity shares comprising 3.64 per cent stake in Pratibha Industries from Citigroup Global Markets Mauritius Private Limited at a share price of 41.25 per share, shelling out Rs 15.17 crore (approximately $2.5 million), the bulk deal data on BSE showed.
In December, PE firm Sequoia Capital had exited its investment in Pratibha Industries.
With this, while Citigroup Global Markets has completely exited the Mumbai-based company, ChrysCapital has increased its stake in Pratibha Industries to 9.67 per cent, becoming the single-largest institutional shareholder of the company.
The PE firm holds stake in Pratibha Industries via its investment vehicle Warhol Ltd. ChrysCapital had invested Rs 100 crore in Pratibha Industries through a preferential allotment in 2010.
Founded in 1982, Pratibha Industries focuses on water management and urban infrastructure space. The firm started its foray with manufacturing of SFRC manhole covers & frames, which were designed & introduced as a replacement to the conventional cast iron manholes cover & frames.
Promoted by Kulkarni family, it has been facing bottom-line pressure.
While the company's revenue almost doubled from Rs 1,272 crore to Rs 2,300 crore between FY11 and FY14, its net profit declined from Rs 71 crore to Rs 15 crore in the same period. Its bottom-line was particularly hit last year. But its profits have seen some improvement lately.
Pratibha Industries' scrip closed at Rs 42.30 a share, down 5.58 per cent on BSE in a weak Mumbai market on Thursday.
(Edited by Joby Puthuparampil Johnson)