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Private equity firm Blackstone on Tuesday picked up 1.87 per cent stake in Monnet Ispat, a sponge iron manufacturer, from the market at a price of Rs 500 a share for a total consideration of Rs 60 crore.
Mr Ajay Bhat, Chief Financial Officer of Monnet, confirmed to Business Line that the market deals by Blackstone, but said the company or the promoters had nothing to do with the market deals. “It would not proper for us to comment on market deals concerning Monnet stock”, he added.
The stock closed a tad up on the BSE and the NSE. The shares were mopped up through Blackstone GPV Capital Partners, an arm of the private equity.
Steel plant
Jajodias-controlled Monnet, which is setting up a 1.4 million tonnes an annum integrated steel plant at a cost of about Rs 3,200 crore in the next couple years, has already allowed Blackstone to invest in its power generation subsidiary.
In 2010, Blackstone picked up 12.5 per cent stake in the subsidiary called Monnet Power Company Ltd (MPCL) for Rs 275 crore. MPCL is setting up a coal-based 1,050-MW independent power unit in Orissa, where it obtained mining licence for coal blocks.
Acquisition
In March, Monnet acquired Indonesian thermal coal company PT Sarwa Sembada Karya Bumi for Rs 108 crore.
CX Partners, another private equity firm last year picked up 8 per cent stake in Monnet for Rs 180 crore. That deal was also through market operation.
>jayanta_mallick@thehindu.co.in
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