warburg pincus | Business Upturn

Warburg Pincus sells 6.45% stake in Kalyan Jewellers for ₹3,584 crore

Aditya Bhagchandani — Thu, 22 Aug 2024 19:22:00 +0000

Private equity firm Warburg Pincus has sold a 6.45% stake in Kalyan Jewellers, raising ₹3,584 crore through open market transactions. The stake was sold via its affiliate, Highdell Investment Ltd, on August 22. The shares were sold at an average price of ₹539.10 each.

Following the transaction, prominent buyers such as the Singapore government, Fidelity, Nomura, HSBC Mutual Fund, and Citigroup Global Markets acquired stakes in the jewellery retailer. Prior to this sale, Highdell Investment held a 9.17% stake in Kalyan Jewellers, which it had owned since 2014.

In addition, Kalyan Jewellers disclosed that a share purchase agreement was signed between the company’s promoter, Trikkur Sitarama Iyer Kalyanaraman, and Highdell Investment on August 21. Under this agreement, Highdell Investment will sell an additional 2.36% stake, amounting to 2,42,99,066 shares, for a total of ₹1,300 crore at a price of ₹535 per share.

CCI approves Warburg Pincus’ ₹4,630 crore acquisition of Shriram Housing Finance

News Desk — Tue, 20 Aug 2024 16:39:09 +0000

The Competition Commission of India (CCI) has approved Warburg Pincus’ ₹4,630 crore acquisition of Shriram Housing Finance. Mango Crest Investment Ltd, a Warburg Pincus affiliate, will acquire shareholding in Shriram Housing Finance Ltd.

Key Points

Shriram Finance is divesting its housing finance arm to focus on vehicle finance and small business lending.
Warburg Pincus commits an additional ₹1,000 crore investment post-deal closure.
The transaction, announced in May 2023, is expected to conclude by March 2025.

Companies Involved

Buyer: Mango Crest Investment Ltd (Warburg Pincus affiliate)
Target: Shriram Housing Finance Ltd (registered with National Housing Bank)
Seller: Shriram Finance (NBFC serving 84 lakh customers)

Market Impact

This acquisition signifies a major shift in India’s financial services sector, potentially altering the housing finance landscape. It also highlights global private equity firms’ ongoing interest in India’s financial market.

boAt Lifestyle raises $100 million from Warburg Pincus

Devanshu Singla — Wed, 06 Jan 2021 05:38:12 +0000

On Wednesday, Headphones maker boAt said it has raised $100 million from private equity firm Warburg Pincus at a valuation of $300 million.

The company said that the capital raised will enable it to strengthen its market position, expand the product portfolio and research & development capabilities. The boAt is also looking ahead to start manufacturing in India under the Make in India initiative.

“The investment is great news for not only the company but also for the entire direct-to-consumer (D2C) sector. The investment has come at the right time as we make efforts to ramp up our manufacturing and global supply chain,” said Aman Gupta, co-founder of boAt.

The product portfolio of boAt includes headphones, earphones, smartwatches, speakers, travel chargers and premium cables.

The boAt, founded by Gupta and Sameer Mehta in 2016, started off as a seller of audio products such as earphones, headphones, soundbars and speakers, but has now positioned itself as a lifestyle brand for millennials and expanded into ‘wearables’ last quarter (in November) with the launch of its first smartwatch Boat Storm. Currently, it has approximately 150 employees working at its offices in Delhi and Mumbai. In 2018, it raised Rs 6 crore in funding from Fireside Ventures. Till now, Fireside has invested Rs 21 crore in the company.

“The electronics that go into most of these products and contribute 30-40% of the product costs are not made in India. These manufacturers are in Taiwan and China. Besides, we are behind China in the mechanicals also by 5-7 years but hopefully within the next 1-2 years, with the scale that boAt has, we will invest thoroughly in this and bring up that ecosystem where we will be on a par with China over the next 2-3 years,” said Mehta.