Arvind Kapur-led promoter group of auto component manufacturer Rico Auto Industries Ltd has pledged additional 7.4 per cent of their holding with KKR India Financial Services Pvt Ltd, a non-banking finance arm of private equity giant KKR.
This has pushed up its total pledged stake with KKR India Financial to 22.17 per cent, as per a stock market disclosure.
Rico Auto and its subsidiaries supply high-precision, fully machined aluminum and ferrous components and assemblies to automotive OEMs (original equipment manufacturers) in India. The company caters to two-wheeler, passenger car and commercial vehicle segments, and also to system suppliers.
KKR, a leading global investment firm that manages investments across multiple asset classes including private equity, has been actively backing Indian business houses through debt as well as equity funding.
It provides structured financing solutions through multiple capital pools, including a non-banking finance company, alternative investment funds and special situations capital pools. The firm looks to provide flexible, long-term capital which can help companies achieve their objectives of balance sheet consolidation, deleveraging and long-term growth. KKR has executed more than $2 billion of structured financing to 21 business groups in India through its credit and capital markets business over the past five years.
Recently, KKR signed a term sheet with unnamed co-investors to provide Rs 1,000 crore ($164.2 million) of structured long-term financing to GMR Holdings Pvt Ltd, a holding company of GMR Infrastructure Ltd.
In May this year, Chennai-based industrial conglomerate Archean Group raised an undisclosed amount in mezzanine funding from KKR.
(Edited by Joby Puthuparampil Johnson)