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ChrysCapital, CX Partners buy minority stake in KPIT Cummins

  • Andrew Woodman
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ChrysCapital and CX Partners have purchased a stake in Indian IT firm KPIT Cummins Infosystems by investing INR1.6 billion ($30 million) in a preferential allotment of 12.9 million shares.

According to VC Circle, ChrysCapital, which already holds 9.52% stake in the company, will see its shareholding rise to nearly 13.6%.

ChrysCapital acquired an 8.9% holding in KPIT in January 2011 for INR1.1 billion and later bought some additional shares in the open market. The private equity firm is leading the current round by infusing INR970 million, taking its total investment in KPIT to over INR2.1 billion.

CX Partners, started by Ajay Relan, former head of Citi Venture Capital International (CVCI) India, will take a 2.7% stake in KPIT for INR648 million.

The subscription price for the shares is INR125 apiece, which represents a 72% premium to ChrysCapital's purchase price of INR72.5 last year.

KPIT Cummins is a technology solutions partner for global manufacturing corporations with special focus on the automotive, energy and utilities, industrial equipments and semiconductor industries. It has filed 38 patents in the automotive and semiconductor sectors and has a workforce of more than 7,700.

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