Global private equity majors as well as Advent and Temasek-backed Crompton Greaves Consumer are in the race for Eureka Forbes, people in the know told The Economic Times, as Shapoorji Pallonji Group looks at an initial public offering, stake dilution, or stake sale or a combination of the three for India’s largest maker of water purifiers and vacuum cleaners.
The global private equity majors running in the race are Blackstone, KKR, Apax and TPG Capital, the people said, adding that the talks revolve around the sale of control or an outright takeover and highlight urgency as Shapoorji Pallonji Group moves to pay the debt raised from listed arm Sterling & Wilson.
The Pallonji family — which bought the business from the Tatas almost two decades ago — estimates the value of Eureka Forbes at up to Rs 6,000 crore ($836 million at current exchange rate).
Feelers have also gone out to Hindustan Unilever, which has a competing water purifier brand (Pureit), ITC and a few other consumer appliances and water and beverage companies, the report said.
Meanwhile, Mahindra Susten, the renewables business arm of Mahindra group, has got binding offers from CLP India and the Piramal Group for its 160 megawatts (MW) solar assets in a transaction that could fetch up to Rs 1,000 crore ($139.4 million at current exchange rate), two people in the know told Mint.
“The sale is part of the company’s plans to sell completed projects and recycle the capital to develop its project pipeline,” one of the persons said.
Previously, reports had said that CLP India and the Piramal Group had shown interest in buying Susten’s solar portfolio.
CLP India is backed by Canada’s second-largest pension fund Caisse de dépôt et placement du Québec (CDPQ)
The Piramal Group had tied up with Canada’s largest pension fund, Canada Pension Plan Investment Board (CPPIB), in May to co-sponsor India’s first renewable energy-focused infrastructure investment trust.