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Fosun eyes stake in Nitesh Estates; Kedaara may invest in Indian School Finance

04 January, 2018

Chinese business conglomerate Fosun Group is in advanced discussions to invest Rs 800 crore ($125 million) in Bengaluru-based real estate developer Nitesh Estates Ltd, The Times of India reported citing people aware of the development.

A deal would mark Fosun’s entry into the Indian real estate sector. VCCircle had reported last month that Fosun was exploring an entry into the Indian realty market and had initiated talks with a number of developers for acquisitions.

According to The Economic Times report, Fosun may buy around 50% stake in Nitesh Estates in its quest to build a property platform in India.

As of September 30 2017, the promoters held 46.93% stake in Nitesh Estates with public shareholders owning the rest.

The report added that Nitesh Estates plans to issue shares to Fosun Property Holdings and its subsidiary IDERA Japan through preferential allotment.

In a separate report, private equity firm Kedaara Capital is said to be in talks to buy a controlling stake in Indian School Finance Company Pvt Ltd, a non-banking financial company that provides loans to affordable private schools, vocational colleges and institutes.

Citing two people aware of the development, Mint reported that Kedaara plans to invest about $50 million in two tranches.

Indian School Finance Company’s chief executive officer Neeraj Sharma had told VCCircle last month that the firm was looking to raise around $25 million (around Rs 160 crore) in equity funding and was in advanced talks with some fund managers.

Launched in Hyderabad in 2008, the NBFC primarily caters to schools and has a presence in 13 Indian states. It has plans to enter Uttarakhand, Jharkhand, Bihar and West Bengal.

India School Finance Company had raised its first equity funding from impact investment firm Caspian Advisors and a bunch of individuals in 2008, according to VCCEdge, the data research platform of News Corp VCCircle.

A year later, it received funding from US-based impact investment firm Gray Matters Capital, which pumped in more capital in 2016.

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Fosun eyes stake in Nitesh Estates; Kedaara may invest in Indian School Finance

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