Tata Capital managed private equity funds are investing Rs 120 crore (around $20 million) to pick 17.36 per cent stake in Mumbai-based Standard Greases & Specialties, which is into greases and lubricating oils, through issue of fresh securities.
The PE firm is investing through Tata Capital Growth I and Singapore-based Alpha TC Holdings, a fund backed by Mizuho Securities and managed by Tata Capital. Both the funds would own 8.68 per cent each.
The proposed investment has just received approval from the Competition Commission of India.
The deal was signed in June this year, following which Tata Capital and Alpha TC Holdings approached the Commission for its approval on July 18.
Standard Greases is primarily engaged in the business of manufacturing and processing of greases and lubricating oils. Presently, the company has five plants in operation, of which two are located in Tarapur, Maharashtra; two in Silvassa and one in Turbhe, Maharashtra.
Tata Capital manages private equity and venture capital funds with cumulative assets under management of approximately $1 billion. Its five funds include Tata Capital Growth Fund, Tata Capital Healthcare Fund, Tata Capital Innovations Fund, Tata Capital Special Situations Fund – Trust and Tata Opportunities Fund.
The Tata Capital Growth Fund is a $240 million fund and targets private equity growth capital investments in companies that derive a substantial portion of their revenues from operations in India. The Fund invests between $10 million and $25 million per transaction and primarily holds significant minority stakes in its portfolio companies.
Even though some other Tata Capital managed funds have struck fresh deals, this is the first new deal for Tata Capital Growth Fund this year.
It had previously co-invested with Alpha Holdings in group firm Tata Technologies, where the two had brought in around $30 million together.
(Edited by Joby Puthuparampil Johnson)