Global Environment Fund (GEF), an alternative asset investment management firm, is investing Rs 45 crore (approximately $7 million) in submersible water pumps manufacturer Shakti Pumps India Ltd through an issue of compulsory convertible preference shares (CCPS), as per a stock market disclosure.
The PE firm, through its arm AF Holdings, will subscribe to 1.5 million CCPS at a price of 300 per share, aggregating to Rs 45 crore (over $7 million). The CCPS will convert into 1.64 million equity shares at Rs 10 each at a premium of Rs 265 per share, with a conversion ratio of 1:1.0909.
It is expected to pick 8.9 per cent stake of the diluted capital base after converting CCPS into shares.
VCCircle had first reported that the firm is looking to raise as much as Rs 200 crore through PE funding. The actual infusion of fresh capital is far less, though.
Mumbai based investment banking advisory firm BNK Capital was the advisor to the transaction.
In the board meeting held on September 17, the company also announced conversion of 0.75 million warrants held by its promoters into shares.
Shakti Pumps offers submersible pumps, submersible motors, vertical multi-stage centrifugal pumps and domestic water pressure booster pumps. It also makes solar pump sets that run on metered electricity and solar panels.
Founded in 1990, Global Environment Fund is a global alternative asset manager with approximately $1 billion in assets under management and has more than 30 investment professionals in locations such as Mumbai, Washington, Beijing, Johannesburg, Cape Town and Sao Paulo.
Earlier in July this year, the fund, along with two other investors, invested in ReNew Power Ventures, a renewable energy producer, through South Asian Clean Energy Fund, which is co-sponsored by GEF and Yes Bank.
(Edited by Joby Puthuparampil Johnson)