Top PE firms eye stake in Kurlon; ReNew Power may buy Ostro from Actis
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Mumbai-based mattress maker Kurlon Enterprise Ltd is in talks with global private equity funds to sell a controlling stake, a financial daily reported.

Three unnamed people told The Economic Times that Kurlon was in talks with private equity firms Carlyle, KKR, Blackstone, Bain Capital, TA Associates and Warburg Pincus.

However, Kurlon managing director Sudhakar Pai told the financial daily that the company was not looking to sell a a controlling stake, but is seeking a valuation of around Rs 12,000 crore for the next round of external funding.

In 2015, Motilal Oswal Private Equity Advisors had invested Rs 90 crore ($13.5 million) for a 16.36% stake in the company, at a post-money valuation of about Rs 535 crore ($83 million).

The company’s total income stood at Rs 981 crore and profit after tax was Rs 60.7 crore in the year through March 2017, according to VCC Edge, the data research platform of News Corp VCCircle.

Kurlon – earlier known as Karnataka Consumer Products Ltd – was set up in 1962 by Ramesh Pai and is a part of the Rs 2,000 crore Manipal Group of Companies, which has interests ranging from education, healthcare and financial services. Kurlon is three times the size of its nearest competitor Sheela Foam Pvt Ltd.

Ostro Energy

ReNew Power Ventures Pvt. Ltd maybe in the last stages of acquiring Ostro Energy Pvt. Ltd, the renewable energy platform of PE firm Actis, for an enterprise value of Rs10,000 crore, a Mint report said.

One unnamed person told the business daily that the equity portion of the transaction is close to Rs 2,000 crore, while the rest will be in debt.

In August, VCCircle had reported that Actis had given the mandate to Bank of America Merrill Lynch for selling Ostro.

Ostro currently has a commissioned capacity of 648.1 MW of wind power projects across Rajasthan, Andhra Pradesh, Karnataka and Madhya Pradesh. It also has about 460 MW of wind and solar projects contracted out and under construction across Karnataka, Gujarat, Rajasthan and Telangana.

Recently, ReNew Power had agreed to acquire three fully operational wind power assets of the KC Thapar Group having a total capacity of 103 megawatts for Rs 1,000 crore ($153 million).

Hindustan Dorr-Oliver

Eight Capital Group and Centrum Capital Ltd are looking to separately bid for a controlling stake in debt-laden Hindustan Dorr-Oliver Ltd, Mint reported citing two unnamed people.

The company is currently going through a corporate insolvency resolution process by the National Company Law Tribunal. Hindustan Dorr-Oliver’s debt is over Rs 1,400 crore as on March 2017, the report said.

The promoter, IVRCL Ltd, held a 55.28% stake in the company. One person told the financial daily that while Eight Capital has already submitted its expression of interest, Centrum has been working on it and is likely to submit it soon.

Eight Capital Group has tied up with Pennar Industries Ltd to act as an operating partner, the report added.

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