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Jayanta Mallick

Kolkata, Oct. 21 Navis, a $2-billion global private equity firm, is picking up majority stake in Sah Petroleums.

The exercise is being carried out in three steps — preferential allotment of 1.2 crore shares, open offer for 88 lakh shares and share purchase from the promoters.

Navis has just been issued 1.2 crore shares of a face value of Rs 5 by Sah Petroleums at a price of 26.65 a through fresh issue.

Its open offer price for 88 lakh shares or 20 per cent of the expanded capital, however, is Rs 48.5 a share. This is because promoters are also offloading 65,000 shares to Navis at that price.

The exercise would expand the paid up capital of the company to Rs 22 crore from the present Rs 16 crore.

If the open offer was fully responded to by investors in the public category then Navis would have a holding of around 60 per cent in the company. This is the first investment by Navis in a listed Indian company.

The promoters’ stake would drop to around 25 per cent of the enhanced capital from the existing 54.47 per cent.

According to sources involved in the dealings, the board of the company would be reconstituted after the exercise. However, the management control would remain with the promoters, Sah family.

Sah Petroleums closed at upper limit of 20 per cent of Rs 17.28 on BSE for two consecutive as sessions, as it raced to catch up with extraordinary high premium over the market price being offered by Navis Asia Fund.

On BSE, 49,895 shares were traded in the counter. The scrip’s average daily volume stands at 37,670 shares in the past fortnight.

This industrial lubricants maker is planning capacity expansion and brand building. Its production units at Vasai and Daman have a capacity of 80,000 kilo litre an annum.

NAF India Holdings announced an open offer to acquire 27.5 per cent of the present capital and 20 per cent of the expanded capital. The offer price was at a huge 304 per cent premium over last Friday’s closing price of Rs 12 on BSE. The offer will remain open between December 4 and December 24.

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