Auto parts maker Suprajit Engineering has decided to acquire 51 per cent in Phoenix Lamps for about ₹125 crore and will soon make an open offer to acquire an additional 26 per cent.

“It fits well with our portfolio as Phoenix Lamps and Suprajit have similar customers and both are market leaders in their domain,” Suprajit’s Chairman & Managing Director Ajit Kumar Rai told BusinessLine .

Phoenix Lamps, a leader in automotive lamps, is managed by PE fund Actis through two of its overseas fund based out of Mauritius, Argon India and Argon Mauritius They have a total stake of 61.88 per cent in Phoenix and the rest is with the public.

“This is a win-win deal, providing a successful exit to Argon, while securing an attractive future for Phoenix as a part of the Suprajit Group, a leading player in the auto components industry,” Randhir Kochhar, Partner, Ernst and Young, which acted as financial advisers to Argon, said in a statement.

Suprajit will pay ₹89 per share of ₹10 each and has offered ₹100 per share to pick up another 26 per cent through an open offer.

In case the open offer is fully subscribed, Suprajit will shed stake to bring down its holding to less than 75 per cent as per the regulatory requirements.

Phoenix will become a subsidiary of Suprajit after the acquisition. Rai and his wife currently hold nearly 52 per cent stake in Suprajit.

Suprajit has made three acquisitions so far.

They are Shah Concabs Private Ltd, CTP Gills Cables Ltd, the UK, and the automotive cable division of Pricol (through a slump sale) in the past and this is its fourth acquisition.

Grant Thornton India was the sole financial advisor to Suprajit on the transaction. Harish H V Partner Grant Thornton said: “This is a strategic deal for Suprajit in its endeavour to continue on its growth path focused on its core strengths in the automotive sector.”

Suprajit is the country’s largest automotive cable maker with an annual cable capacity of 150 million cables.

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