PEs use slump to boost stake in portfolio firms

Mumbai : 09 Sep 11 | 12:07 AM:Savvy private equity (PE) investors are using the fall in the stock market as an opportunity to raise stake in the companies part of their portfolio through secondary-market purchases. The rise in competition in private space is also compelling PE companies to try their luck at the stock market to reap quick returns.

Last week, ChrysCapital bought an additional 1.68 per cent stake in Nagarjuna Construction Company (NCC), raising its stake to nine per cent. Before that, ChrysCap had bought 3.6 per cent in NCC in August-end. In May, the PE player had bought over two per cent in NCC for around Rs 67 crore. Its entity, Warhol Ltd, acquired the shares at Rs 98.99 apiece from HSBC Global Investment Fund.