Jupiter Cap picks up IDFC’s stake in Sical

CHENNAI/BANGALORE: THE Bangalore-based Jupiter Capital, promoted by Rajeev Chandrasekhar, has bought a 13.28% stake in Sical Logistics, part of the MA Chidambaram Group. The transaction was carried out through a block deal on the Bombay Stock Exchange.

IDFC Infrastructure Fund and IDFC Private Equity were investors in Sical and were planning to exit. “After exiting the telecom sector, Rajeev Chandrashekar has identified a few growth sectors and logistics and transportation is one of them,” said Sudhakar Gande, Jupiter Capital’s director.

The transaction, which involved Jupiter acquiring 52,50,000 shares of IDFC, is valued at Rs46 crore based on Sical’s Wednesday share price of Rs87.50. Jupiter Capital also has a joint venture with Neptune Oriental, the Singapore government-owned global transportation and logistics firm, Neptune Orient Lines, to provide rail freight services in India.

“There is a lot of potential in logistics sector in the country. If the development in container and warehousing is addressed, this sector could grow exponentially,” said Mr Gande. Sical, headed by Ashwin C Muthiah, son of Spic chairman, AC Muthiah, is into container handling, clearing and forwarding goods, and cargo transportation.

Sical reported a loss of Rs35.63 crore on a consolidated basis in 2009/10 against Rs18 crore in the previous year. Its net sales came to Rs 722 crore (Rs674.54 crore).

In the first six months of the current year, it clocked a net profit of Rs9.28 crore against a loss of Rs47.31 crore in the same period of the previous year on a consolidated basis.

It reported net sales of Rs394.87 crore (Rs344.60 crore).