Bain Capital sits pretty with notional gains of Rs 120 crore in Himadri

Bain Capital, which was recently in the news for having acquired a substantial stake in Lilliput Kidswear, is doing well for itself.

The PE firm is already counting its profits on the Rs 410 crore investment it made for acquiring a 25% stake in Kolkata-based Himadri Chemicals & Industries Limited, early this year. At the current market price of Rs. 520/- per share for Himadri, Bain Capital is making a nice 30% return on its two and a half month old investment. (Bain had bought shares in Himadri @ Rs. 400/- per share by way of preferential allotment and open offer in Feb 2010.)

Kolkata-based Himadri Chemicals is the largest manufacturer of coal tar pitch in India with a market share of 70% in terms of sales. The company manufactures three types of coal tar pitch – 1) Binder pitch: which is used in aluminium and graphite electrodes as binding material and; 2) Zero QI Insoluble pitch: finds use in graphite electrodes and; 3) Mesophase Pitch: used for producing lithium ion batteries

Established in 1984, Bain Capital is one of the world's leading private investment firms managing approximately USD65 billion in assets under management.

This is a nice presentation to understand the business of Himadri Chemicals: http://www.himadri.com/files/HCIL_presentation_vF_2-Sep-09.pdf