KKR to buy Chennai-based NBFC Motichand Finance

Investment major KKR & Co is picking up a 100 per cent stake in Chennai-based non-banking finance company, Motichand Finance Ltd, through one of its units.

According to a report in Business Standard, KKR India Asset Investments PTE Ltd will buy over 50 per cent stake in Motichand through a fresh subscription of shares. After this, Motichand's existing shareholder KKR Capital Markets India will transfer its entire shareholding in the company to KKR India Asset.

This would give KKR India Asset a 100 per cent stake in Motichand Finance.

KKR had also acquired another Chennai-based NBFC, Multiflow Financial Services, to start its lending operations in India in 2009. The alternative investment has built a loan book of over $1 billion.

The development also comes as KKR is raising rupee denominated fund to make mezzanine and structured investments in the country. KKR received SEBI's regulatory approval for a fund, KKR India Alternative Credit Opportunities Fund 1, in August last year.

(Edited by Joby Puthuparampil Johnson)

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