ICSA, a Hyderabad-based embedded technology and electrical infrastructure solutions provider, which was reported to have raised $52 mn from CVC International and Goldman Sachs, now, seems to have excluded CVC International from its investor list.
ICSA will sell 14% equity to global investment bank Goldman Sachs, which will infuse the entire $52 mn to be pumped into the company, part of it for the equity and the rest in foreign currency convertible bonds (FCCBs).
ICSA will not sell equity to Citigroup Venture Capital International Growth Partnership Mauritius (CVC). The company has cited non-fulfillment of regulatory and technical conditions for not going ahead with CVC. The venture capital firm had a 45-day due diligence period, but could not complete the proceedings in time. CVC had sought an extension, but failed to get it from the market regulator SEBI. ICSA was also not in favour of extending the deadline.
Goldman Sachs is believed to have evinced interest in acquiring the 14 per cent stake at higher amount. The deal with CVC was at around Rs. 950 per share, while Goldman Sachs’ offer is at Rs. 1250 per share. This is in addition to Goldman Sachs’ commitment of $22 mn in ICSA through FCCBs.
Goldman Sachs will now hold 14% stake in ICSA and FCCBs to the tune of $22 mn. ICSA is convening a board meeting on March 17 to consider the Goldman Sachs offer.
At present, foreign institutional investment holding in ICSA stands at 25.37%. The company was looking at the investments to meet its working capital requirements, for inorganic investments and R&D related expenses.
Read the Business Standard article.
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