ChrysCapital set to buy into Federal Bank unit; Jain Irrigation may list food biz
Photo Credit: Shah Junaid/VCCircle

Homegrown private equity firm ChrysCapital Investment Advisors India Pvt. Ltd is in final negotiations with private-sector lender Federal Bank Ltd for a 26% stake in its wholly owned subsidiary Fedbank Financial Services Ltd for Rs 400 crore, The Economic Times reported.

If the deal goes through, Fedbank Financial will use the funding to expand its business, the report said, citing people aware of the development. The report added that Federal Bank CEO Shyam Srinivasan confirmed the deal was in final stages.

Fedbank Financial is a non-banking financial company offering property loans, gold loans and structured finance. It had a loan portfolio of Rs 962 crore as on 31 March 2017. It posted a profit after tax of Rs 22.5 crore for the financial year ended March 2017.

ChrysCapital was previously an investor in Federal Bank. It had invested in the lender in 2012 and exited in 2016.

Meanwhile, Anil Jain, vice-chairman and managing director at Jain Irrigation Systems Ltd, told CNBC TV18 the company is planning to list its food business in the next financial year, according to a report in the Mint newspaper.

The unit, Jain Farm Fresh Foods Ltd, makes food products. It had raised $103 million (Rs 681 crore) from Singapore-based Mandala Capital in 2016.

Separately, Mint reported, citing three people aware of the development, that Naga Dhunseri Group Ltd and MK Shah Exports Ltd are in separate talks with Tata Global Beverages Ltd to buy its 41% stake in Amalgamated Plantations Pvt. Ltd.

The report cited a person as saying that Tata Global expects an enterprise valuation of around Rs 1,300 crore for the stake.

Apart from Tata Global Beverages, the Tata group holds another 24% stake in Amalgamated Plantations, according to the report.

Leave Your Comment(s)