IndiaRF to invest Rs. 615 cr in Setco gp
The transaction will be carried out in a two-step process with Setco
image for illustrative purpose
Automotive Ltd (Setco) transferring its clutch business into its subsidiary Setco Auto Systems Pvt Ltd (SASPL)
New Delhi: Piramal Enterprises and Bain Capital Credit-promoted India Resurgence Fund (IndiaRF) on Tuesday announced investment of up to Rs615 crore ($83 million) in Gujarat-based auto components major Setco Group. The transaction will be carried out in a two-step process with Setco Automotive Ltd (Setco) transferring its clutch business into its subsidiary Setco Auto Systems Pvt Ltd (SASPL).
Subsequently, IndiaRF along with its affiliates will invest through a senior debt facility and 35 per cent equity stake in SASPL, IndiaRF said in a statement.
IndiaRF is an India-focused distressed investment platform.
"The investment proceeds will be used for growth capital and providing working capital to enable the businesses of (SASPL) to grow on the back of anticipated recovery in the commercial vehicles market, meet the demand in the replacement market and re-finance/repay debt facilities," it added.
Commenting on the investment in Setco, IndiaRF Managing Director Shantanu Nalavadi said, "Our partnership will drive a two-fold strategy to restructure the balance sheet of the company as we also work closely with the promoters and management team, to drive rapid revenue growth and sustainable improvement in profitability."
