Capri Stressed Assets Fund, a fund managed by Capri Xponentia Managers, has committed Rs 375 crore ($48 million) to Deepak Fasteners Ltd in its maiden investment.
Capri Fund has taken significant minority stake in the company. The investment is structured in combination of debt, convertible and equity, the company said in a statement.
Through the investment raised, the Ludhiana-based company, which operates the ‘Unbrako’ brand, provided an exit to select lenders.
“The Company intends to come out with a public offering of its equity shares in the next few years. From Capri Fund, Umesh Biyani and Ankit Jain shall be inducted as Nominee Director on the Board of the Company,” the statement said.
Aarayaa Advisory Services Private Limited advised Deepak Fasteners on the transaction.
“By realigning the capital structure and reducing debt to sustainable levels, the investment is structured to fuel the Company’s growth plan. It is our belief that the company is at the cusp of emerging as a preferred fastener partner for the Indian industry driven by its strong world-renowned ‘Unbrako’ brand, excellent manufacturing capabilities and the unfolding India growth story. This investment underlines our philosophy of working with companies having strong and resilient business models, help them turnaround their business operations and evolve as a major player within their industry,” said Rajesh Sharma, Founder of Capri Global Group.
Capri Xponentia Managers LLP is the investment manager of Capri Stressed Assets Fund, a Scheme of Capri India Investment Fund (earlier Capri India Real Estate Investment Fund). CXM is a joint venture between the Founders of Capri Global Group and Xponentia Capital Partners.
Sanjeev Kalra, Promoter of Deepak Fasteners added, “We plan to capture a major share of global market for industrial fasteners with an extensive and accessible worldwide marketing and distribution network and with our range of Made-in-India “Unbrako” fasteners. Capri Xponentia’s investment is a testament to our capability and potential. We are confident that we will be able to achieve our future targets and come out with an IPO in near future.”
Established in 1958, Deepak Fasteners is the owner of the brand Unbrako and has currently installed capacity of 49,000 MT (metric tonne) and five manufacturing facilities globally. It has wide range of over 20,000 SKUs catering to diverse industry segments with a distribution network across 40 countries and 250 plus dealers in India.