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Argentum Motors, a company floated by BVR Subbu, former president of Hyundai Motors India, and others like SpiceJet promoter Ajay Singh and broadband entrepreneur Ashish Deora, has raised Rs 200 crore from a group of private equity and hedge funds such as D E Shaw, South Africa's Rand-owned fund Satwa (based out of Hong Kong), and Infrastructure Leasing and Financial Services Ltd (IL&FS). According to Business Standard, the investors would pick up 10 per cent in Argentum Motors. The same investors have also provided a loan of Rs 100 crore to the company.
Argentum had taken over the Daewoo Motors India factory near Delhi, which had closed down four years ago, for Rs 800 crore. They plan to set up a huge auto ancillary facility and also function as a third-party manufacturer for auto companies. It will be focus on international auto companies to begin with, and later will take on work from domestic auto manufacturers too. The company is also looking for a fresh investment of Rs 500 crore to upgrade the facility and would be looking at more investors, the report adds. The three promoters of the company will eventually hold around 12 per cent in the company after the debt is converted into equity.
Meanwhile, another automotive executive, Jagdish Khattar, is believed to be contemplating a chain of service centres which will service cars irrespective of who the manufacturer is. The outgoing CEO of India's largest car maker Maruti Suzuki is believed to be courting investors for the proposed venture. Any takers?