Malabar India Fund, managed by Malabar Investments, has acquired 1.5 percent equity stake in KSH International, the magnet winding wires manufacturer, especially ahead of its Rs 745-crore IPO launch.
Rajesh Hegde and his son Rohit Hegde have executed stake sale of 9.11 lakh shares (equivalent to 1.6 percent of pre-offer paid-up equity) on December 5 and 8 by way of secondary sale, as per the share purchase agreements on December 5.
The said stake sale has done at a price of Rs 384 per share, valuing the company at little more than Rs 2,600 crore.
Malabar India Fund has bought 0.7 percent and 0.8 percent shares from Rajesh Hegde and Rohit Hegde, respectively in the company, amounting to Rs 32.7 crore.
After the stake sale, their shareholding in the company reduced to 19.2 percent each from 20 percent each earlier.
KSH International that commenced operations in 1981 with Taloja facility and expanded to three facilities all in Maharashtra had filed draft document with the SEBI to raise Rs 745 crore via initial public offering (IPO).
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The IPO is a combination of fresh issuance of shares worth Rs 420 crore, and an offer-for-sale of Rs 325 crore worth shares by Hegde family, as per the DRHP filed in May this year.
The company has already received approval for draft papers in August this year, to launch its IPO.
KSH International proposed to utiliise Rs 226 crore of fresh issue proceeds for repaying debt, and Rs 90 crore for setting up of new machinery at Supa and Chakan facilities. Further, Rs 10.4 crore will be used for setting up of a rooftop solar power plant for power generation at Supa facility, and the remainder amount for general corporate purposes.
Nuvama Wealth Management, and ICICI Securities will act as book running lead managers for the KSH International IPO.
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