Private equity fund Everstone Capital, founded in 2006 by Atul Kapur and Sameer Sain, will pick up close to 15 per cent equity in Hinduja Leyland Finance, a non-banking financing arm of the Hinduja Group.
The 15 per cent stake is expected to cost Everstone a tidy Rs.200 crore.
S. Nagarajan, Managing Director of Hinduja Leyland Finance, told The Hindu that the company had already inked an agreement with Everstone to facilitate the equity induction. He indicated that a nominee of Everstone would soon be on the board of Hinduja Leyland Finance, which had equity contributions from truck-maker Ashok Leyland and other Hinduja Group companies.
“We need to grow. And, we thought this is a better way of raising funds,” Mr. Nagarajan said. The induction of fresh funds, he said, would help the company support a balance sheet size of around Rs.6,500 crore.
At present, according to him, the assets under the company’s management stood at around Rs.4,000 crore. The investment into the Chennai-based company would be made from Everstone’s second private equity fund. Everstone Capital Partners -II, a $580-million fund, is domiciled in Mauritius.
