Bloomberg News

Virgo Engineers Said to Hire Goldman Sachs to Explore Sale

February 16, 2012

(Updates company comment in fourth paragraph.)

Feb. 15 (Bloomberg) -- Virgo Engineers Ltd., an Indian valve maker which twice planned an initial public offering, is exploring a sale that may value the company at more than $600 million, two people with knowledge of the matter said.

The company hired Goldman Sachs Group Inc. to manage the sale, the people said, asking not to be identified because the information is private. Pune-based Virgo has received preliminary bids from companies based in Japan, Europe and the U.S., they said, without disclosing names of potential buyers.

Virgo planned IPOs in both 2008 and 2010. In the latest attempt, Virgo planned to sell 13.4 million shares, according to a draft prospectus at the time.

In an e-mailed response to questions today, Paresh Rajda, Virgo’s head of corporate finance, declined to comment on “market rumors and speculation.”

Tano Capital, which invested in Virgo in 2006, held a 9.7 percent stake in the company, according to the 2010 draft prospectus. The company’s co-founders Mahesh Desai and V. Balasubramanian owned about 32 percent and 28 percent of Virgo respectively, the 2010 draft prospectus showed.

Virgo has customers in 60 countries, manufacturing locations in the U.S., Italy, Germany and India and over 900 employees, according to the company’s website.

--Editors: Mohammed Hadi, Chitra Somayaji

To contact the reporter on this story: George Smith Alexander in Mumbai at galexander11@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net


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