Redington promoters sell 14% to foreign funds

MUMBAI: The Singapore-based promoters of Redington (India), one of the largest distributors of IT hardware and software products, have sold close to 14% in the company to a clutch of foreign funds, including Goldman Sachs, Morgan Stanley and Blackstone, in a Rs 391-crore deal.

The 30-year-old IT firm competes with multinationals like Ingram Micro in distributing printers, networking products and software. Apart from the three large foreign investors, the list of buyers also includes IDFC, Universities Superannuation Scheme and Payash Securities.

The six investors bought 61 lakh shares, or 7.8% of the 13.99% equity sold by the promoter. The identity of the buyers of the remaining shares could not be ascertained. Redington India shares slipped 5% to Rs 360 on BSE on Thursday.

“The promoters have sold some of their holdings in the company to improve liquidity in the stock,” R Srinivasan, MD, Redington (India), told ET. As on March 31, 2010, the promoters held a little over 43% in the company.