Oman India Joint Investment Fund invests in auto parts maker Divgi-TTS

Private equity firm Oman India Joint Investment Fund (OIJIF), a joint venture of Oman’s State General Reserve Fund and State Bank of India, said it has invested in Pune-based automobile component maker Divgi TorqTransfer Systems (Divgi-TTS).

OIJIF has invested Rs 100 crore ($15 million) in Divgi-TTS, the first investment from its second fund, reported The Economic Times. The percentage of stake acquired was not disclosed. The second fund, which has a target corpus of $300 million, had hit first close at $220 million in January 2017.

The report said OIJIF, a mid-market private equity firm, recently announced the second close of its second fund, with commitments of $230 million.

The investment, made in April, going by OIJIF’s website, will be used for the auto part maker’s capacity expansion and diversification into new product categories, the report said.

According to the report, the auto part maker is eyeing emerging growth in electric and hybrid vehicle systems as well as BS-VI technology.

Divgi-TTS makes automotive drivetrain systems and components, transfer cases, torque couplers and auto-locking hubs, according to its website.

OIJIF, set up in 2010, has completed investments worth $100 million from its first fund.

The first fund, says the company website, has made investments in sports footwear retailer SSIPL, National Commodity and Derivatives Exchange (NCDEX), defence electronics maker Indus Teqsite, battery maker HBL Power and agro chemicals firm GSP Crop Science.

In March 2017, the fund had sold its stake in Kotak Mahindra Bank.

Besides Kotak Mahindra Bank, OIJIF has exited Solar Industries India Ltd and partly exited Beaver Engineering.

In a recent deal in the automobile components space, Mint reported that private equity major Blackstone Group LP had acquired Chennai-based Comstar Automotive Technologies for Rs 1,000 crore ($150 million).

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