Friday, February 29, 2008

ICICI Venture Picks Up 15pc In City Co Arrow Webtex

NEW DELHI: Private equity firm ICICI Venture has acquired a 14.9% stake in Mumbai-based textile and real estate development firm Arrow Webtex via a preferential allotment. The deal is expected to be in the region of around Rs 130-140 crore. The transaction gives the private equity fund a stake slightly below the level, which mandates an open offer for public listed firms in India. Arrow Webtex is engaged in the business of woven and printed labels, elastic tapes, apart from various activities related to real estate, hospitality and gaming business via its subsidiaries.

ICICI Venture, which manages various private equity, real estate and mezzanine funds, has picked up around 2.03 crore shares via the allotment last week. This deal gave Pacific Corporate Services a 8.8% equity stake in Arrow Webtex. As of December 2007, the promoters held 71.94% stake in Arrow Webtex. The rest was with public and corporate bodies.

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