ICSA Limited, an embedded technology provider, has attracted foreign investment of around $52 mn through two different deals. The company has made a private placement to Citigroup Venture Capital International Growth Partnership Mauritius Limited (CVC), for a sum of $30 mn, while investment banking firm Goldman Sachs has invested $22 mn in the company through the FCCB route.
Citigroup has acquired 14% stake in ICSA by investing $30 mn at a price of Rs. 950 per equity share. With the Citigroup's investment the level of FII holding in ICSA would go up from 25.37% at present to 30.4%. Citigroup will also nominate a member to the board of ICSA. Since the equity picked up by Citigroup is through a fresh issue the promoter stake in the company will continue to remain at 20.5% after conversion of warrants. The sum raised will be used to fund working capital needs and for investments in R&D.
ICSA has been developing technology solutions for power, water, oil and gas sectors to identify transmission and distribution losses and monitor consumption. ICSA is also looking at expanding its global operations and is looking at acquisitions in the utility sectors like water, gas and power where the utilities can be provided with the products of the company. Overseas markets contribute to 25% of the revenue, which the company expects to go up to 50% in the next few years.
Read The Financial Express article.
Related article: Citigroup plans $1 bn PE spend
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