The Dandekar family, owners of the 80-year-old office stationery major, Camlin, is in talks with private equity major India Value Fund to sell a part of its shareholding to part finance growth plans.
The promoters— four members from the Dandekar family — own close to 40% in Camlin. According to people with knowledge of the talks, the negotiations are for valuing a stake close to 15% stake. It would be in addition to a borrowing programme as the Rs 330-crore Camlin battles rivals such as Faber-Castle and Pidilite . The deal could be for around Rs 100 crore .
Chairman Dilip Dandekar denied any deal was in the offing . “We had diluted the holding 2-3 years back. As for professionalising the management, we have already initiated the process.”
The talks with Camlin, a leader in office and school stationery and an iconic brand for most school going children, could eventually lead to a gradual divestment by the Mumbai-based family, which is seeking to professionalise the company management, said people close to the family.
But people close to family members say talks have been continuing and that two other funds had also been approached . “The search is to get a fund that would have domain expertise so that the company can benefit,” said one such person.
Talk of an impending transaction have already boosted the Camlin stock. The shares, which rose 0.3% to Rs 49.30 on Monday, have gained 23% in the past month.
Anil Singhvi, the former head of finance for Gujarat Ambuja, is involved in structuring the transaction, the people said. He, however, denied this.
Source: Economic Times