Clearwater Capital part exits Diamond Power Infrastructure

By Shruti Ambavat

  • 02 Jun 2014

Private equity firm Clearwater Capital Partners has part exited Diamond Power Infrastructure by selling 5.5 per cent stake or almost half of its holding for Rs 27.9 crore ($4.7 million) to a bunch domestic investors via open market on Monday.

The firm sold the shares at Rs 90.3 per share to three investors, namely, Antique Finance, Antique Sectrade and Saraswati Commercial.

Clearwater Capital held around 11.16 per cent stake as of March 31, 2014 and post this transaction its holding has shrunk to 5.65 per cent.

Clearwater Capital first invested in the business, formerly known as Diamond Cables, in 2006. It raised its holding over time and has invested through a mix of open market purchases and direct investment into the firm.

Diamond Power has progressively expanded from a cabling and transmission equipment manufacturer to a turnkey solutions provider.

The firm also counts Kotak PE as a shareholder.

On a standalone basis, the firm posted a net profit of Rs 110 crore in the financial year ended March 31, 2014 against Rs 104.1 crore in the previous year. The firm’s net sales stood at Rs 3,177.6 crore in FY14 against Rs 2,581.4 crore in the previous year.

Diamond Power scrip last traded at Rs 107 per share, up 6.5 per cent on the BSE in a strong Mumbai market on Monday.

(Edited by Joby Puthuparampil Johnson)