Private equity firm Bain Capital would be investing about Rs.580 crore for over 35 per cent stake in Himadri Chemicals and Industries.
The board of directors of Himadri Chemicals has approved the issuance of 63.1 lakh shares, representing 15.39 per cent stake on a preferential basis to Bain Capital, the chemical company said in a statement. The allotment would be made at Rs.400 a piece, resulting in an equity raise of Rs.252 crore for Himadri Chemicals.
Further, the PE firm would make a mandatory open offer for a 20-per cent stake, resulting in a further investment of up to Rs.328 crore.
The company would utilise the issue proceeds to augment capacity and to expand business globally.
The investment is subject to shareholders’ approval, the statement added.
This would be the first India investment by the Boston-headquartered PE firm, having an asset under management of $65 billion.
“We welcome Bain Capital into the Himadri family, and hope to leverage its investment and value addition expertise, to help take Himadri to a global leadership position,” Himadri CEO Anurag Choudhary said.
UBS Investment Bank is acting as financial advisor to Himadri and Enam to Bain Capital on this transaction.