Volrado Venture Partners has sold around two thirds of its 4 year old investment in Ess Dee Aluminium with over 5x returns over the last nine months. Volrado has been selling in small tranches over the last 3 quarters and it sold 0.2 million shares at INR 438 per piece, almost 6 times its cost of purchase.
Volrado had invested INR 11.8 crore through a pre IPO deal in Ess Dee in May 2006 at a cost of INR 74 per piece. It held on to its shares for 3 years and started selling chunks from July to September 2009 quarter. The initial set of sale happened when the share price was around INR 300 giving around 4x returns.
The investment firm then sold another block in October to December 2009 when prices were in the INR 350 to INR 400 range and sold out a smaller tranche but at a much higher price this week.
The latest shareholding structure for March 2010 is not available yet, but assuming Volrado did not sell any further stake, it is still holding on to around 0.6 million shares which is worth INR 27.6 crore. Volrado has already made around INR 39 crore which means at a consolidated level, it is sitting on unrealised gains of a cool 6x on its 4 year old investment.
Mumbai based Ess Dee Aluminium, that acquired loss making India Foils from the Vedanta group 2 years ago was also in talks to buy Italy's packaging company Comital for USD 125 million to USD 150 million. It is not clear if that deal has fallen through or still in works.
The firm came up with an IPO in 2006 and is 60% owned by its chairman and managing director Mr Sudip Dutta. It clocked 43% jump in net sales of INR 401 crore with net profit of INR 66 crore for the year ended March 2009. But at a consolidated level after factoring in loss making India Foils, its consolidated revenues for the year stood at INR 451 crore with net loss of INR 24 crore.
（Sourced from www.vccircle.com）
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