After Albula Investment Fund, two more PE funds from Mauritius have picked up additional stake in sick Hinduja Foundries, a Hinduja group casting/forging arm.
While Bridge India Fund has increased its stake in the company from 4.67% to 7.19%, LTS Investment Fund — another Mauritius PE fund has picked close to 10%.
Bridge India Fund, which already holds 18.22 lakh shares in the company or a 4.67% stake, has acquired 34 lakh shares afresh a few days ago through the QIP route to up its holding to 7.18%. Like Albula, LTS too participated in the QIP for the first time and acquired 71 lakh shares or 9.77%.
Both funds have picked up shares at the rate of Rs 31 a share. Albula Investment Fund had announced picking up of close to 7% share in the company (50.05 lakh shares), a few days ago.
It may be recalled, Hinduja Foundries, a sick and BIFR-referred company, has been looking for funds to meet its working capital requirements as well to revive the growth.
The company a few days ago announced that its accumulated losses as at December quarter have significantly eroded the net worth of the company. Having reported continuous losses over the last few quarters, the company moved the BIFR in February 2013, intimating the board about the erosion of more than 50% of its net worth.
Continuing its downward momentum, the company had reported a net loss of Rs 42.83 crore in the December quarter, as compared to a net loss of Rs 51.01 crore in the Q3 of last fiscal.
It may be recalled the company had withdrawn its Rs 125-crore rights issue two years ago and its decision to raise Rs 300 crore from promoters through preference shares also had not met with success.