Wed, Mar 23, 2011IL&FS Group has completely exited its investments made in Pipavav Shipyard starting around three years before the public issue of the infrastructure company with 5x returns, according to VCCircle estimates. The group through multiple investment arms including an entity that acts as a trustee of SCB Asian Infrastructure Fund together sold around 7.6% stake in Pipavav Shipyard for about Rs 412 crore (USD 91 million).
IL&FS Group had invested around Rs 109 crore starting with 2005-06 to buy the shares of the company that went public in 2009. Bulk of this was through sale by promoters of Pipavav including the SKIL Group at Rs 10 per share with the rest coming through a fresh issue at a price of Rs 45 per share in November 2007.
The group’s average cost of acquisition is pegged at just a little over Rs 16 per share as against the sale price hovering around the Rs 80-83 price range on Monday.
According to changes in shareholding disclosures, IL&FS Group had also sold some shares in early 2010 during the April-June quarter when the company’s share price was in the Rs 72-100 range. So IL&FS Group has in toto generated over 5x returns from its overall exposure in the company.
Last October, London-listed private equity firm Trinity Capital plc had also completed its exit from Pipavav Shipyard making 3.6 times (3.6x) on its 46-month-old investment. Trinity Capital, which is listed on Alternative Investment Market, said it had a total gain of approximately £35.3 million ($55.57 million) on an investment of £13.5 million ($21.25 million) in January 2007.
(source:VCCircle)
IL&FS Group had invested around Rs 109 crore starting with 2005-06 to buy the shares of the company that went public in 2009. Bulk of this was through sale by promoters of Pipavav including the SKIL Group at Rs 10 per share with the rest coming through a fresh issue at a price of Rs 45 per share in November 2007.
The group’s average cost of acquisition is pegged at just a little over Rs 16 per share as against the sale price hovering around the Rs 80-83 price range on Monday.
According to changes in shareholding disclosures, IL&FS Group had also sold some shares in early 2010 during the April-June quarter when the company’s share price was in the Rs 72-100 range. So IL&FS Group has in toto generated over 5x returns from its overall exposure in the company.
Last October, London-listed private equity firm Trinity Capital plc had also completed its exit from Pipavav Shipyard making 3.6 times (3.6x) on its 46-month-old investment. Trinity Capital, which is listed on Alternative Investment Market, said it had a total gain of approximately £35.3 million ($55.57 million) on an investment of £13.5 million ($21.25 million) in January 2007.
(source:VCCircle)
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