Tano Capital invests $8.5m in India's Safari Industries
Tano Capital will pay INR498 million ($8.5 million) for a 20% stake in Safari Industries India, a plastic moulded luggage maker, through a preferential allotment of shares.
According to a regulatory filing, the issue was approved at a meeting of Safari's board on Monday. Tano will buy 830,000 equity shares for INR600 apiece. The company will also issue up to 330,000 share warrants to its promoter Sudhir M. Jatia at a price of INR600 a share in one or more tranches.
The transaction, which will see the promoter stake fall from 75% to 62%, is still subject to shareholder approval.
Set up in 1980, Safari manufactures plastic moulded suitcases, briefcases and vanity cases among other products. In the quarter ended on March 2013, it reported a 83.22% year-on-year decline in net profit to INR2.4 million. Sales increased by 58.7% to INR437 million in the quarter.
This is the third new investment by Tano and its second PIPE deal this year. The firm previously agreed to invest in Shilpa Medicare and Sanghvi Brands.
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