Rieter fully exits Lakshmi Machine Works

CHENNAI: Swiss firm Rieter has sold its residual 3.48% stake (3.91 lakh shares) in the Coimbatore-based textile machinery company Lakshmi Machine works ( LMW) for about Rs 78.40 crore in an open market transaction on Tuesday.

The major chuck of the shares were picked up by two schemes of HDFC Mutual Fund and one scheme of Reliance Mutual Fund.

Last year, Rieter and LMW agreed to part ways after a nearly half-a-century partnership. It subsequently sold a major chunk of its 14% stake in LMW in a buyback offer launched by the latter. At that time, Rieter pared it stake to below 4% and got an return of Rs 225 crore. Tuesday's sale completes Rieter's exit.

Also, last year, Rieter sold its 50% stake in Rieter-LMW Machinery Limited (RLM), formed in 1994 as a 100% export-oriented unit for Rieter ring frame assemblies.

In a bulk market deal on NSE, Reiter sold the stake at Rs 2002.59 a share. Two schemes of HDFC Mutual Fund (Equity and Prudence Fund) bought 1.90 lakh shares for Rs 2,000 a share, while Reliance Mutual Fund bought 2 lakh shares for Rs 2005 a share.