, the financial services arm of the Indiabulls Group, is raising Rs 1,539.20 crore (about $210 million) from four foreign institutional investors including, US private equity firm Tamarind Capital and investment firm Steadview Capital, according to an announcement.
The Indian company will use the proceeds to capitalise its two subsidiaries, Indiabulls Consumer Finance Ltd and Indiabulls Asset Reconstruction Co Ltd, for meeting their business requirements, to support the future growth of their businesses and to further augment the long-term financial resources of the company and such other purposes, it said in a BSE filing on Wednesday.
Of the total investment, Rs 740 crore will come from Tamarind Capital, Rs 614.2 crore from Steadview Capital Mauritius, Rs 125.8 crore from ABG Capital and the remaining Rs 59.2 crore from DF international Partners. The funds will be raised by the way of preferential allotment of compulsorily convertible debentures (CCDs) to these investors.
These CCDs will be compulsorily converted into fully paid-up equity shares of face value of Rs. 2 each, at a conversion price of Rs. 550 per share on or before 18 months from the date of issue. This is a 35 per cent premium to the company’s closing market price of Rs 408.20 on Tuesday on NSE. The debentures shall carry a coupon of 14.9 per cent per annum.
Tamarind is a part of Singapore-based investment firm Clermont Group, founded by New Zealand-born entrepreneur Richard F Chandler.
In July this year, another Clermont Group company, Cinnamon Capital, sold more than 1.73 crore shares or 2.86 per cent stake in Indiabulls Ventures for a little over Rs 832 crore through an open market transaction. The shares were purchased by Jasmine Capital Investments Pte Ltd. The PE firm’s stake had reportedly dropped to 3.46 per cent after the sale.
Recently, another Indiabulls Group company Indiabulls Housing Finance was also in the news for mulling stake sale in UK-based lender OakNorth Holdings. The deal could see Indiabulls selling its entire or part of its 18.7 per cent stake in the company to a private equity fund, reported The Economic Times.