Global equity firm Warburg Pincus has sold its entire 8.35 per cent stake in electrical and power equipment company Havell’s India for about Rs 730 crore.

The shares were purchased by Vontobel Funds Inc through open market transactions.

Seacrest Investment, a Warburg Pincus group company, sold 58.20 lakh shares, amounting to 4.66 per cent stake, of Havells India for Rs 407.40 crore, on the NSE.

Besides, another Warburg Pincus group firm Woodcrest Investment offloaded 46.07 lakh shares, equivalent to 3.69 per cent stake, of the electrical and power equipment company for Rs 322.50 crore, on the BSE.

The shares were sold on an average price of Rs 750 valuing the transaction to Rs 730 crore.

Commenting on Warburg Pincus exit, Havell’s India Joint Managing Director, Anil Rai Gupta, said, “The transaction will not have any negative impact on the company. Generally, private equity firms exit after four-five years of investment.”

“In fact, it is a positive development for incoming investors. It shows that company is doing well,” he added.

Earlier in February, Warburg Pincus had sold 5.6 per cent stake in Havell’s India for Rs 455 crore.

In December 2007, Warburg Pincus has acquired over 67.60 lakh securities in Havell’s India for Rs 439.40 crore.

At the end of March quarter, Seacrest Investment held 58.20 lakh shares or 4.66 per cent stake in Havell’s India, while Woodcrest Investment owned 46.07 lakh scrips or 3.69 per cent holding in the company.

Havell’s India’s product range includes industrial and domestic switchgears, cables and wires, energy meters, fans, CFL lamps, lighting systems for domestic, commercial and industrial application, and modular switches.

Shares of Havell’s India rose by 1.22 per cent to trade at Rs 738.50 apiece on the BSE at 12.26 p.m.

Related Topics