In an off-market deal, the Mumbai-based private equity
firm Blue River Capital, has acquired 10.22 per cent of
the promoter''s stake in Rane Holdings Limited, through
its Mauritius investment arm.
per-share price is valued at Rs192 and the total deal
is worth $4.74 million. The private equity firm will have
its nominee on Rane Holding''s board soon. As a policy
Blue River Capital seeks to invest in family or entrepreneur-run
businesses and has around $140 million under management.
to L Ganesh, chairman, Rane Group, the investment by a
private equity will help to enhance the shareholder value.
this stake sale the promoter''s stake in Rane Holdings
will come down to 62 per cent.
Rane Holdings is the holding company for the Cuhennai-based
Rs1,400-crore turnover auto components company Rane group.
Last fiscal the company posted a consolidated revenue
of Rs222.39 crore.
group is restructuring its holding so as to eliminate
the cross holdings by group companies and bring it under
month two group companies, Rane Brake Linings Limited
and Rane Engine Valves Limited, had announced their plan
to demerge their manufacturing operations into two separate
companies. Ernst & Young is advising the group on
the proposed restructuring scheme. (See: Rane''s
rejig enters last lap)
to a company official the companies are preparing the
demerger scheme to be filed with the bourses. After getting
the sanction from the stock exchanges, the scheme will
be submitted to the Madras High Court, which in turn would
convene a shareholder''s meet to accord approval.
Rane group has five listed companies Rane Holdings,
Rane (Madras) Limited, Rane Engine Valves, Rane Brake
Linings and Kar Mobilies Limited. It has four unlisted
entities Rane TRW Steering Systems Limited, Rane NSK Steering
Systems Limited, Rane Investments Limited and Rane Diecast
Limited. The first two are joint ventures.