Ushdev International Ltd, a public-listed firm specialising in metal trading and wind power generation, is raising Rs 160 crore ($32 million) through a preferential allotment to Singapore-based private investment group Oxley.
The capital raised will be used for business expansion, strengthening financial position and meeting working capital requirements, according to the company.
Oxley will subscribe to 5 million fresh shares at Rs 320 each and post-issue, will own around 14.5 per cent stake in the company. Post-issue, Ushdev promoters’ holding will be diluted to 46.74 per cent from the current 54.69 per cent.
Ushdev International scrip was trading flat on the BSE on Thursday morning at Rs 300 a share or 6 per cent below the price at which Oxley would be buying the shares.
Ushdev is promoted by the Gupta family with Prateek Gupta as its managing director. The company posted revenues of Rs 3,283 crore with net profit of Rs 43.7 crore for the year ended March 31, 2011. Bulk of its revenue comes from metal trading, a low-margin business.
Oxley is a private investment group specialising in multi-family office services, private equity and real estate investments in the Asia-Pacific region. The Singapore-headquartered firm has assets under management worth $1 billion.
Oxley Capital, the Oxley Group’s corporate finance arm, has invested in several projects and forged strategic alliances with partners across various industries in the region, including Leverage Capital, an India-based fund management and investment banking company. Leverage Capital has presence in Kolkata, New Delhi and Mumbai, and employs over a dozen professionals.