Stocks

Redington India promoters divest 12%

Our Bureau Chennai | Updated on July 04, 2011

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Promoters of the Chennai-based Redington India Ltd have divested nearly 12 per of their stake in the company for nearly Rs 410 crore.

In a block deal that happened today, Standard Chartered Private Equity picked up 10 per cent stake in Redington while the another 2 per cent was purchased by ECL Finance, the company informed the Bombay Stock Exchange today.

Shareholder Redington Mauritius sold 8 per cent while Synnex Mauritius of Taiwan-based Synnex group sold 4 per cent of their holdings in the company. After the deal, Redington Mauritius' holding will come down to 23 per cent and that of Synnex to 24 per cent.

“Redington has always been a management-run company and to reiterate this philosophy, the two major shareholders have brought down their respective holdings to below 26 per cent,” Mr R Srinivasan, Managing Director, Redington India, told Business Line over the telephone from Singapore.

“The footprint of private equity and that of Standard Chartered Bank are similar to that of Redington, with a focus on emerging markets of Asia, Middle east and Africa,” he observed.

Last year, Redington, which is into trading IT hardware, achieved a turnover of Rs 17,478 crore and a net profit of Rs 226 crore.

Synnex is the largest dedicated distributor in the Asia-Pacific Region and is a global information technology (IT) supply chain services provider with a comprehensive range of offerings to original equipment manufacturers and value-added resellers.

Redington is the second largest distributor of IT products in India with a network of over 20,000 channel partners and a product range of around 75 brands. It manages operations with over one lakh transactions a month.

The company will continue to lay emphasis on adding new categories such as Tablets, Smart Phones on different platforms, entering the content segment in the gaming business in India and the Middle East. Focus on the value business in the Middle East and Africa will drive revenue and profit growth, he said.

Redington's share price on the Bombay Stock Exchange closed at Rs 88.50, down by 0.39 per cent over previous day's closing price.

Published on July 04, 2011

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