NewQuest, Infina invest $21 mn in Paragon Partners-backed Capacite, Maini Precision

By Swet Sarika

  • 24 Oct 2016
Credit: Thinkstock

Paragon Partners said on Monday that Infina Finance Pvt. Ltd and private equity firm NewQuest Capital Partners have invested $21 million (Rs 140 crore) in two of its portfolio companies, Capacit'e Infraprojects Ltd and Maini Precision Products Ltd.

Infina Finance, an investment company jointly owned by Kotak Mahindra Bank and the Kotak family, is a limited partner—or investor—in Paragon Partners. Paragon is a PE firm floated by Siddharth Parekh, the younger son of Housing Development and Finance Corp chairman Deepak Parekh.

Construction firm Capacit'e and engineering components maker Maini Precision will also receive some residual investment from Paragon Partners, a person close to the development told VCCircle.

This brings the total investment by Paragon, Infina and NewQuest in the two companies to $48 million with Capacit'e securing $30 million and Maini Precision the remaining, the person said on the condition of anonymity. 

Earlier this year, Paragon had announced an investment of $10 million in Capacit'e when it hit the first close of its maiden fund.

In August, Paragon announced an investment of Rs 111 crore ($16.5 million) along with unnamed co-investors in Maini Precision.

VCCircle was the first to report in July that Capacit'e was in talks to raise additional capital from Paragon and other investors.

Mumbai-based Capacit'e is an engineering and construction company that builds high-rises, factories and allied infrastructure. It has more than 1,000 personnel across multiple projects in Mumbai, national capital region and Bengaluru, according to the media statement.

Maini Precision makes auto products such as machined castings, fuel filters and sub-assemblies used in engines and transmission and fuel injection systems. It is a supplier to auto companies such as Eaton, Magneti Marelli and Volvo. It also supplies airplane parts to companies such as Snecma, GE and Marshall, the statement said.

The PE firm has raised up to $70 million so far. It has received commitment from India Infoline, Edelweiss Group, Infina Finance and Canada-based Fairfax group.

Usually, it co-invests in its portfolio companies along with its limited partners, the person cited above said.

It aims to deploy the corpus across sectors such as consumer discretionary, financial services, infrastructure services, industrials and healthcare services. The fund aims to invest in 10 to 15 mid-market companies in India with the deal size ranging from $10 million to $20 million, according to its website.

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