Centrum, Ranjan Pai invest in Jana; Essel may sell some of its finserv biz

By Keshav Sunkara

  • 06 Feb 2019
Credit: 123RF.com

Bengaluru-headquartered Jana Small Finance Bank Ltd has raised Rs 300 crore ($42 million at current exchange rate) from Centrum Group and the family office of Ranjan Pai, chairman of Manipal Education and Medical Group, The Times of India reported.

Citing people aware of the development, the report said Pai’s family office has invested Rs 145 crore and Centrum Group has put in Rs 155 crore.

The company is valued at Rs 5,742 crore (around $800 million), according to the report.

Jana Small Finance Bank was earlier known as Janalakshmi Financial Services. It started banking operations in March 2018.

In January last year, Mint reported that Jana Small Finance Bank had received Rs 600-700 crore from new investors led by global investment firm HarbourVest Partners.

In September 2017, it raised Rs 1,030 crore ($161 million) in a funding round led by existing investor TPG.

Separately, media baron Subhash Chandra-led Essel Group plans to sell parts of its financial services business, Mint reported.

Citing two people aware of the development, the report said Essel is in early-stage discussions with prospective buyers to sell the lending business and the mutual fund business.

It is not immediately known how much stake Essel is going to sell.

Essel is looking to sell parts of its financial services business to pare debt.

Essel Finance has presence in various verticals including private equity, non-banking financial services, housing finance, distribution of mutual funds and insurance, foreign exchange (forex) and investment banking.

In November last year, Essel said it is looking to sell up to half of its stake in Zee Entertainment Enterprises Ltd to a strategic partner.

Earlier this week, The Economic Times reported French packaging company Albéa and private equity giant Blackstone Group are in advanced talks to acquire a controlling stake in packaging company Essel Propack Ltd.