TVS Venu, a conglomerate led by TVS Motor Company's Chairman Sudarshan Venu and with interests spanning mobility, financial services, real estate and lifestyle sectors, has agreed to acquire a minority stake in Bengaluru-based scheduled commercial bank Jana Small Finance Bank Ltd through a mix of primary and secondary transactions.
The Chennai-headquartered group will acquire a stake of 9.9% on a fully-diluted basis.
This includes a purchase of 5.64% stake worth Rs 317.5 crore (around $33 million) through primary issue of shares to GWC Family Fund Investments, the group’s Singapore-based holding vehicle. Another 4.9% stake will be acquired by TVS Motor Co for Rs 193.31 crore via a secondary transaction with the company’s promoter Jana Holdings Ltd.
The overall fundraise, worth Rs 728 crore (around $76 million), also includes Mumbai-based investors Singularity AMC and Capri Global who have picked up 0.84% each. Meanwhile, Shruti Lohia, the daughter of Sri Prakash Lohia, Indian-born Indonesian billionaire businessman and founder of Indorama Corporation, has also bought a 4.57% stake in the company through the investment vehicle 2I Capital PCC.
The latest deal comes a little more than a month after the TVS Venu group agreed to pick up 100% stake in US-based Prudential Financial Inc.’s stake in PGIM India Asset Management Pvt Ltd and PGIM India Trustees Pvt Ltd.
TVS Venu also operates TVS Credit Services, a non-banking financial company, offering consumer and retail loans to millions of customers across India. It also owns Home Credit India, the consumer finance business from the Netherlands-based Home Credit Group that it acquired last year. Its investment in Jana will allow for "mutual collaboration" in various areas for long-term success, it said.
Jana offers mass retail and MSME banking services with a distribution footprint in 822 outlets across 23 states and 2 Union Territories.
