INDIA BUSINESS WORLD - FEBRUARY 16th - FEBRUARY 29th - 2008
ICICI VENTURE PICKS 14.9% IN ARROW WEBTEX
Private Equity firm, ICICI Venture, has picked 14.9% stake in Mumbai based textile and real estate development firm Arrow Webtex, through a preferential allotment. The deal is estimated to be valued around Rs 130-140 crore. The transaction gives the private equity fund a stake marginally below the level which mandates an open offer for public listed firms in India.
Arrow Webtex is engaged in the business of woven & printed labels, elastic tapes apart from various activities related to the real estate, hospitality and gaming business through its subsidiaries. For the quarter ending December ’07, it had consolidated net sales of Rs 46.03 crore with consolidated net profit of Rs 2.76 crore. The company has a market capitalisation of around Rs 645 crore.
As per the disclosures made to the stock exchanges, ICICI Venture which manages various private equity, real estate and mezzanine funds, has picked around 2.03 crore shares through the allotment.
If the deal was struck at the market price on the day, it would be valued at about Rs 132 crore.
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