Chennai: In an off-market deal, the Mumbai-based private equity firm Blue River Capital, has acquired 10.22 per cent of the promoter''s stake in Rane Holdings Limited, through its Mauritius investment arm.

The per-share price is valued at Rs192 and the total deal is worth $4.74 million. The private equity firm will have its nominee on Rane Holding''s board soon. As a policy Blue River Capital seeks to invest in family or entrepreneur-run businesses and has around $140 million under management.

According to L Ganesh, chairman, Rane Group, the investment by a private equity will help to enhance the shareholder value.

After this stake sale the promoter''s stake in Rane Holdings will come down to 62 per cent.

Rane Holdings is the holding company for the Cuhennai-based Rs1,400-crore turnover auto components company Rane group. Last fiscal the company posted a consolidated revenue of Rs222.39 crore.

The group is restructuring its holding so as to eliminate the cross holdings by group companies and bring it under Rane Holdings.

Last month two group companies, Rane Brake Linings Limited and Rane Engine Valves Limited, had announced their plan to demerge their manufacturing operations into two separate companies. Ernst & Young is advising the group on the proposed restructuring scheme. (See: Rane''s rejig enters last lap)

According to a company official the companies are preparing the demerger scheme to be filed with the bourses. After getting the sanction from the stock exchanges, the scheme will be submitted to the Madras High Court, which in turn would convene a shareholder''s meet to accord approval.

The Rane group has five listed companies — Rane Holdings, Rane (Madras) Limited, Rane Engine Valves, Rane Brake Linings and Kar Mobilies Limited. It has four unlisted entities Rane TRW Steering Systems Limited, Rane NSK Steering Systems Limited, Rane Investments Limited and Rane Diecast Limited. The first two are joint ventures.