Nitco Limited

Investment date:  Jul – Oct 2007
Percent stake: 6%
Type of Investment: Secondary (stock market purchases)
Sector: Building Materials
Website:  www.nitcotiles.com

Nitco is one of the largest manufacturers of flooring tiles in India, selling approximately 9 million square metres of tiling per year, through 700 direct dealers and 5,000 retail outlets.  It differentiates itself to other providers by offering a complete flooring solution, enabling customers to purchase a variety of products at a single point.   

Nitco has historically been actively engaged in real estate construction and development through its subsidiary Nitco Realties Private Limited, but is now committed to the disposal of these assets over a 3 year time frame (excepting those nearing completion).

Elephant Capital built its stake in the business during July - October 2007, and currently has a position of 6%.  Since its investment, Nitco raised US$ 42 million through a Qualified Institutional Placement in November 2007, at a 17% premium to Elephant Capital’s investment price; key investors in that round included Deutsche Bank, Citigroup, Merrill Lynch and Citigroup.