3i, the world leader in private equity and venture capital, is believed to have bought a 5% stake in steel pipe maker Welspun Gujarat Stahl Rohren for Rs 350 crore. Sources said, the fund acquired shares from secondary market.
3i got into India in 2005 by making an investment in Nimbus Communications. It later invested in Navayuga Infratructure Construction, Vijai Electronics, Mundra Port, International Cars & Motors, International Tractors and UFO Moviez among others.
The promoters – BK Goenka and RR Mandawewala hold 43% stakes, while institutional investors hold 24%. On why did 3i choose market route and not bought from promoters, sources said, Welspun group's textile company, Welspun India, had alloted shares on a preferential basis to Temasek Holdings and ICICI Ventures.
The promoters, it seems, are not keen on following this route to accomodate institutional investors in Welspun Gujarat. The Welspun Gujarat stock on Monday touched a 52-week high at Rs 353.
Welspun Gujarat, which sells pipes to oil firms like Exxon Mobil, Royal Dutch Shell, Kinder-Morgan and BG, has an order book of Rs 5,530 crore, which includes a single Rs 1835 crore order from Canadian firm – TransCanada.
Source: Times of India