ChrysCapital has acquired 10 per cent stake in Jaipur-based non-banking finance company (NBFC) AU Financiers (India) Pvt Ltd for Rs 120 crore ($22 million) through secondary purchase of shares from early PE investor Motilal Oswal PE and the promoters, according to a senior company executive who did not wish to be named.
While Motilal Oswal PE sold 7 per cent stake, the balance 3 per cent was bought from the Agarwal family, the promoter group. The Agarwals hold 35 per cent stake post the latest transaction.
The deal valued the firm at Rs 1,200 crore. One year ago, the NBFC attracted around $50 million in a funding round led by Warburg Pincus in which existing investor IFC took part as well. That round also included a part-exit by Motilal Oswal PE besides a fresh equity issue.
Motilal Oswal PE, which had put in Rs 40 crore across two rounds of investment through India Business Excellence Fund-I in 2008 and 2010, is estimated to have encashed around Rs 150 crore from the two partial exits. Its remaining stake is valued at Rs 144 crore, giving a lifetime valuation bump of over 7x, as per VCCircle estimates.
A sector-agnostic investor, Motilal Oswal PE is looking at investments across segments like food, agriculture, healthcare, NBFCs and niche financial services.
For ChrysCap, which recently raised its sixth fund, this is the first investment in 2013. Last year, it invested in firms such as KPIT Cummins, Federal Bank, Intas Pharma and Karur Vysya Bank.
(Edited by Sanghamitra Mandal)