Global buyout giant Texas Pacific Group or TPG is picking up a 49% stake in Shriram Retail Holdings Pvt Ltd for $120 million (Rs 530 crores). Shriram Retail is the holding company for Shriram City Union Finance, the consumer lending arm of the Chennai-based group. So the investment will give TPG indirectly 26.7% stake in Shriram City Union Finance excluding the shares in the open offer.
TPG would make an open offer for a further 20 per cent of the equity in Shriram City Union Finance, a publicly listed company. The investment is subject to approval of the FIPB and other regulatory agencies. This would be TPG's biggest deal in India, which has just raised $30 billion globally in fresh funds.
TPG was advised by DSP Merrill Lynch Limited and J. Sagar Associates and the Shriram Group was advised by Kanga & Co.