Investment in Mahindra

RNS Number:3920X
Promethean India PLC
30 May 2007

30 May 2007

                              Promethean India Plc

               Investment in Mahindra Forging Mauritius Limited


Promethean India Plc (ticker symbol PTHI) ("Promethean India") is pleased to
announce that it has acquired a 10% shareholding in Mahindra Forgings Mauritius
Limited ("MFML") through its Mauritian subsidiary, Promethean India Investments
Fund 1 ("Fund 1"). The aggregate amount of the investment is approximately #6.14
million, being a #2.46 million equity investment for a 10% shareholding in MFML
and a #3.68 million loan to an SPV, which will co-invest alongside Fund 1. The
loan will be secured against a further 15% interest in the shareholding of MFML
and will be repayable over two years earning interest at 9% per annum. Should
the SPV co-investment fail for whatever reason, it is possible that Promethean
India's interest in the shareholding of MFML may increase in aggregate to 25%.

MFML holds 100% of the economic interests in Schoneweiss & Co. GmbH, a German
based forging business which specialises in manufacturing auto components and
which has a strong exposure to the Indian automotive industry. With over 1
million cars sold in India last year and India fast becoming the centre for auto
component manufacturing in the world, the investment in MFML gives Promethean
India exposure to a sector that is growing rapidly. In the year to 31 December
2006, the underlying companies within MFML generated revenues of #65 million and
profits after tax of #5 million.

Promethean India is backing the incumbent management team of MFML in a
buy-and-build strategy and looks forward to supporting the management team in
continuing to build the business both organically and through acquisitions. It
is envisaged that the business will grow rapidly and there may be opportunities
to invest further capital in the future.

Promethean India has now made its first investment since raising #50 million and
being admitted to AIM a month ago.

Mohit Burman, chairman of Promethean India Advisors Private Limited, the
Investment Adviser to Promethean India, said today: "This investment
demonstrates our ability to originate and execute proprietary deals. We are very
excited about the growth prospects in the Indian automobile sector and feel
privileged to be working with the largest automobile conglomerates in the
country."

Gaurav Burman, a principal at Promethean Investments LLP, the Investment Manager
to Promethean India, stated, "When we raised our India Fund less than a month
ago we had a number of transactions in our pipeline. We are very pleased to have
completed our first investment and are looking forward to working with the
Mahindra's to build what we hope will be one of the largest forging businesses
in the world."


Enquiries:

Gaurav Burman             Promethean Investments LLP         [phone]
Nandita Sahgal            Insinger de Beaufort               [phone]


Promethean Investments LLP is authorised and regulated by the Financial Services
Authority.


                                     -ENDS-


Notes to Editors:

Promethean Investments LLP

Promethean Investments LLP is a specialist fund manager that focuses on activist
private equity investing in both quoted and private UK and Indian businesses.
Promethean aims to acquire an interest in public and private companies where it
believes opportunities exist to create or unlock near-term value. It combines
active management, financial leverage and flexibility to create bespoke deal
structures for quoted and unquoted companies.

Promethean Investments LLP manages Promethean Plc, a #57 million AIM quoted
private equity fund and also manages Promethean India Plc, a #50m AIM quoted
private equity fund that targets value and growth opportunities in India.



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