India: Westbridge Capital hikes stake in tyre maker Ceat for $28m

Private equity (PE) firm Westbridge Capital, through its unit Jwalamukhi Investment Holdings, has acquired a stake in tyre maker Ceat Ltd for Rs 184.8 crore through open market transaction on Wednesday.

In the process, Jwalamukhi Investment Holdings bought 1.43 million shares or 3.54 per cent stake at Rs 1,290.35 each from Kotak Mahindra (International) Ltd, according to a bulk deal data available on BSE.

Post this, Kotal Mahindra has completely exited the company.

An email sent to Sumir Chadha, managing director, Westbridge, for more information, did not elicit any response till the time of filing this article.

Westbridge Capital provides early, expansion, growth and late stage capital to public and private companies operating in India. It typically invests $10-80 million for a minority stake in companies across financial services, consumer services, healthcare, and information technology sectors.

As of December 31, 2016, Westbrige held a little over 8 per cent stake in the company.

CEAT, the flagship company of RPG Enterprises, was established in 1958. The tyre maker has a capacity of over 800 tonnes per day with a presence in global markets. It offers a range of tyres to all segments like heavy-duty trucks and buses, light commercial vehicles, earthmovers, forklifts, tractors, trailers, cars, utility vehicles, motorcycles, scooters as well as auto-rickshaws.

Ceat scrip closed at Rs 1288.45 each, up 0.04 per cent on BSE in a weak Mumbai market on Wednesday.

For Westbridge, this is the second investment by the PE firm since January this year. Last week also, it hiked its holding in portfolio company Relaxo Footwears for Rs 75.3 crore. The stake was bought from Kotak Mahindra.

Also Read:

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.