Nalanda part exits India's Carborundum Universal
Nalanda Capital has sold shares worth INR4.4 billion ($65.1 million) in Indian industrial materials company Carborundum Universal.
The divestment was made through the firm's Nalanda India Fund and Nalanda India Equity Fund, according to trade data published by the Bombay Stock Exchange. This coincided with substantial share uptakes by Aadi Financial Advisors, Amrit Petroleums and Nemish Shah, founder of Indian investment house ENAM. Carborundum stock jumped as much as 10% following the transactions and was last trading at about INR247.
Nalanda India Fund acquired a 5.6% stake in the company in 2008 and controlled 8.9% of the company at the beginning of the 2016 financial year, when Nalanda India Equity Fund held 2.4%. This interest represented about 21.3 million shares across the two vehicles, almost 19 million of which have now been sold.
Carborundum is considered India's leading manufacturer of bonded and coated abrasives. It also manufactures technical ceramics that operate under extreme conditions. Revenue improved 2% during the 2016 financial year to INR20.6 billion while profit after tax declined 21% to INR1.2 billion.
Founded in 2007 by Pulak Prasad, formerly India managing director at Warburg Pincus, Nalanda invests exclusively in small to mid-cap companies in India. Earlier this year, the Singapore-based firm raised $620 million of additional financing for Nalanda India Equity Fund.
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