Creador raises Somany Ceramics investment to $10m

Creador initially acquired a 11.2% stake in the Mumbai-listed company last month via Latinia Limited, an affiliate of Creador Fund II, for INR499.9 million ($8.1 million). The firm subscribed to 4.3 million equity shares at INR115 apiece.

The size of Creador's stake in the business following this additional $2 million investment is unknown, but it is estimated the PE firm will acquire a further 2-3%. Shares in Somany closed at just over INR137 yesterday - down 1.79% - giving the company a market capitalization of about INR5.31 billion.

Founded in 1969, Somany is generally considered to be a leader in the Indian tiles sector, manufacturing ceramic glazed tiles, vitrified tiles, sanitary ware and porcelain floor tiles. The company expects to have a manufacturing capacity of 34 million square meters of tiles per annum by the end of the current financial year.

Somany's revenues grew 20% year-on-year to INR10.56 billion in the 2013 financial year, while net income improved 27.5% to INR320.07 million.

This is Creador's third India investment, after it acquired a 9.9% stake in Repco Home Finance for INR724 million in February 2013, and committed capital to Cholamandalam Investment & Finance from its debut fund.

The GP reached a $105 million first close on Fund II in August. The final target is $250 million.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Industrials
• Creador
• India
• manufacturing
• Growth capital