September 08, 2008

SPSL in talks for INR 700 crore private equity deal

Livemint reported that Shree Precoated Steels Limited is planning to sell 10% to 15% of its stake to a private equity fund to raise about INR 700 crore and is talking with potential investors including ICICI Venture Limited for the purpose.

SPSL’s promoters currently own 62% of its stake. Foreign institutional investors own 12%, with Citigroup Global Markets Mauritius Private Limited holding 1.18%, Merrill Lynch Capital Markets Espana SA 1.9%, and Passport Capital Llc. 4.9%. The company has a market capitalization of around INR 2,317 crore on the Bombay Stock Exchange.

SPSL is the latest to join the band of firms tapping into private equity after funds dried up in equity markets. Private equity firms, too, are keen to grab the opportunity in India’s capital intensive realty business.