Rajkot-based Silver Consumer Electricals Pvt. Ltd has concluded issuing 20% stake to Plutus Wealth Management LLP and India Inflection Opportunity Fund via the private placement route.
The funds were raised at a valuation of about Rs 400 crore, with both new investors picking a 10% stake each in the company, thus joining its board of directors with promotors Vinit Bediya, and Dharamshi Bediya.
The capital raised shall be deployed to meet the firm’s working capital requirements for its existing operations, as well as for its newly-launched consumer electricals operations. According to Arpit Jain, manager at Pantomath Capital Advisors, the new stakeholders are likely to stay invested in the company in the mid-to-long-term.
Pantomath Capital Advisors was the sole investment banker to the transaction.
According to a press statement, Silver Consumer has built capabilities for developing and manufacturing consumer electrical products by setting up production blocks and R&D facilities in Metoda, Rajkot spread across 30 acres of land as a part of its product portfolio diversification plans.
“Looking at organic and inorganic growth, we are in advanced discussions with a couple of businesses for a strategic tie-up with Silver. We are working on an expansion plan and post our private placement round, we are looking at preponing our growth trajectory,” promoter Vinit Bediya said.
Founded in 1981 by Dharamshi Bediya, Silver Consumer Electricals primarily manufactures pumps and motors catering to agriculture, industrial manufacturing, household, and energy segments. The firm claims to have over 1,000 employees on its payroll, with a production capacity of over 10 lakh pumps per year.
“Silver fits into our investment theme of Make-in-India and rural consumption,” Madhu Lunawat, chief investment officer & fund manager of India Inflection Opportunity Fund said.
India Inflection Opportunity Fund, managed by Pantomath Capital Management Pvt Ltd, is a Category-II Alternative Investment Fund which primarily invests in emerging firms, mostly at a pre-IPO level for a period of approximately three years.
Plutus Wealth Management LLP, is a private equity firm focused on listed and unlisted companies. Among some of its earlier investments, Plutus, along with Oaks Asset Management cumulatively invested about $30 million in supply chain finance firm CredAble in October 2021.
