Temasek Holdings of Singapore is taking a 14.9% stake in Shringar Films at Rs 62.50 a share. The equity has been picked up from India Value Fund managed by G W Capital, reports Gurbir Singh from Mumbai. The latter currently holds around 26% in the film distribution and exhibition company. Temasek's acquisition has been routed through Aranda Investments (Mauritius) and Dunearn Investments (Mauritius).

Initially, around 10% of the Shringar equity or nearly 32 lakh shares changed hands today, sparking off market speculation that the Anil Ambani group was the buyer. Temasek has pledged to acquire another 4.9% of the equity (a total of 47 lakh shares) at the same rate at a later date. The acquisition by Temasek is worth Rs 29.37 crore. GW Capital, in January 2001 picked 30% in the Shringar Group for Rs 23 crore in a private equity placement, indicating considerable appreciation for the investment. Post the recent IPO by Shringar Films, GW Capital's holding dropped to around 26%.

"We were the first to realise the potential of the film exhibition business and the investment has given us a good return," Vishal Nevatia, CEO of India Value Fund, said. He said the GW Capital stock was sold to Temasek since it was a 'high-quality' foreign investor that was capable of seeing to Shringar's long-term needs for funds. Commenting on the remaining 11.1% equity in Shringar, Mr Nevatia said the fund was not in a hurry to exit, but, "we are ready to sell if a good opportunity comes along".

Shringar director Shravan Shroff said: "We are pleased that a high quality institutional investor like Temasek, with its global network, has invested in the company. We believe Temasek will, in turn, benefit from the long-term growth potential of the company."