Chennai-based Shriram City Union, the financial services arm of the Shriram Group has received private equity funding of Rs. 192 crores from Merrill Lynch, ChrysCapital and Cambridge Place Investment Management. The investors have picked up a 30% stake in the company by way of buying 40 lakh shares each at a price of Rs 160 a share.
The Shriram City's equity capital base would increase to Rs. 43 crores from Rs. 27.1 crores, and promoters' holding would come down to 54% from 73.37%. Spark Capital facilitated the deal.
Shriram City reported a net profit of Rs. 22.34 crores in the half year ended 30 September 2006 on a total income of Rs. 143.75 crores against PAT of Rs. 14.81 crores on income Rs. 94.03 crores during the same period last year. On BSE, it closed at Rs. 160.05 a share down 0.22% from the previous close of Rs. 160.40 a share.
The Shriram Group companies have been attracting a lot of private equity funding of late. Its engineering company Shriram EPC has attracted financing from TPG Newbridge, UTI Venture Funds, Bessemer Ventures, ChrysCapital are some of the PE firms that have been investing in the Shriram Group companies.
Read The Economic Times article.
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