Private Equity News & Analysis

Credit Suisse makes first private equity investment in India

A new private equity division of Credit Suisse has concluded its first investment in Asia with the acquisition of a 10 percent stake in India’s Binani Cement, a cement maker.

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Credit Suisse Private Equity Asia, a new initiative from the Swiss financial institution, has acquired 10.09 percent stake in India’s Binani Cement for Rs1.5 billion ($32 million; €25 million). The deal is Credit Suisse’s first private equity investment in Asia, a spokesman said.

 

Binani Cement is a subsidiary of Binani Industries, which is listed on Bombay Stock Exchange.

 

The board decided on 27 July to divest 20,500,000 equity shares or approximately 10.09% of the paid up capital of Binani Cement, for Rs73 per share, according to a filing with the exchange.

 

Binani Cement can produce up to 2.25 million tonnes a year of cement from its Sirohi facility in Rajasthan.

 

In September 2005, JP Morgan Special Situations Asia, a subsidiary of J P Morgan Chase, acquired a 25 percent stake of the company’s share capital for Rs 1.2 billion, according to Binani. JP Morgan Securities India has also extended a term loan of Rs 1.3 billion to finance an expansion project.

 

India’s cement sector has been a popular acquisition target amid the country’s construction boom. In March, Actis bought an 11 percent stake in Dalmia Cements for $25 million.