Creador takes minority stake in India’s Somany Ceramics

14.01.14 / Author: Asian Venture Capital Journal

India and Southeast Asia-focused GP Creador will buy about 11% of listed tile and sanitary ware maker Somany Ceramics for INR499.9 million ($8.1 million).

According to a regulatory filing, Latinia Limited, an affiliate of Creador Fund II, is to be allotted 4.3 million equity shares, or around 11.19% of the company’s share capital, at INR115 apiece.

Somany shares closed at INR118.40 on the last trading day before the announcement, and were trading at an all-time high of INR124 today, a rise of 12.73% over one year.

Founded in 1969, the company manufactures ceramic glazed tiles, vitrified tiles, sanitary ware or porcelain floor tiles. It has a strong brand and established market position in parts of India.

Apart from production sites in the states of Gujarat and Haryana, the company acquired minority positions in two companies last year, increasing its aggregate capacity to 24.45 million square metre per annum.

Somany’s revenues grew 20% year-on-year to INR10.56 billion in the 2013 financial year, while net income improved 27.5% to INR320.07 million.

This is Creador’s third India investment, after it acquired a 9.9% stake in Repco Home Finance for INR724 million in February 2013, and committed capital to Cholamandalam Investment & Finance from its debut fund.

The GP reached a $105 million first close on its follow-on fund in August. The full target is $250 million.