Promoters of Vijai Electricals along with minority stakeholder in the company, 3i are looking to exit the company.

The promoters have mandated Kotak Mahindra Capital to look for buyers.

3i Group holds below 5% stake in the company with the rest lying with the promoters. It had invested $25.8 Mn in August 2008.

Last year the company had divulged plans to raise more PE funds to meet its capex and other operational requirements. Prior to that in 2010 WL Ross and Co. LLC of U.S was planning to invest R400 Cr in the company but the deal did not go through.

Vijai Electricals has been facing a combination of debt troubles and receivables management since past couple of years. Last year Crisil downgraded its ratings on the company from ‘CRISIL BBB-/Negative/CRISIL A3’ to ‘CRISIL C/CRISIL D/CRISIL A4’ citing weak liquidity and bank facility servicing delays as a reason for the rating cut.

In February this year, SBI had referred Vijai Electricals to the Corporate Debt Restructuring (CDR) cell which had an exposure of R1000 Cr out of the total R2200 Cr lent by seven banks.

Vijai Electricals is a manufacturer exporter of power and distribution transformers established in 1973. It has a manufacturing facility in Hyderabad.

The company has also diversified into the manufacture of Switchgear products like 12KV indoor /outdoor VCBs, and 36KV Outdoor VCBs, Instrument transformers of both medium voltage and EHV class and SF6 Breakers up to 420KV.

Recently Diamond Power acquired stake in Maktel Control & Systems in July this year.

The Indian transformer industry grew at 8% CAGR for the last 5 years comprising mainly of power & distribution transformer manufacturers.

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