CCP, DCL in Rs 150-crore equity deal

MUMBAI: Private equity firm Clearwater Capital Partners (CCP) has clinched a Rs 150-crore equity-cum-debt deal with the power equipment company Diamond Cables (DCL).

CCP has picked up 14.9% equity in DCL for Rs 25 crore (Rs 95 per share). The private equity firm has also invested another Rs 125 crore as debt in the company. The promoters will also infuse Rs 12 crore to increase their holding in the company. Ernst & Young acted as the advisor to the transaction.

Confirming the development, Amit Bhatnagar, joint managing director, DCL, said: “As part of the financial restructuring by DCL, Clearwater Capital has agreed to invest Rs 150 crore in the company as both equity and debt. A part of it will be used to repay the debt from bankers. We are also planning to increase our capacity utilisation to 45% in a year.”

As per the deal, DCL would allocate 25,00,000 equity shares to CCP and 7,50,000 equity shares to the promoter group on a preferential basis.