Brookfield to invest Rs 1450 crore for 40% in IndoStar


MUMBAI: Brookfield Business Partners, an arm of the Canadian private equity giant Brookfield will invest a total of Rs 1450 crore in IndoStar Capital Finance which will give it 40% stake in the company, the company said in a stock exchange notice post its board meeting on Friday.

ET had reported on the likelihood of this deal earlier this week.

Brookfield will invest the money through a combination of subscription to securities and purchase of shares from IndoStar Capital Mauritius which will trigger a mandatory open offer, and seek to acquire 40% interest in the company. “The overall investment will comprise a combination of primary investment in equity shares and compulsorily convertible preference shares of Rs1,225 crore along with a secondary purchase of shares from IndoStar Capital Mauritius. Brookfield will also become a co-promoter in IndoStar and nominate two board members,” the company said.

R. Sridhar will continue to lead the company in his role as vice chairman and CEO, IndoStar.

IndoStar Capital Mauritius will continue to be the promoter holding company. The NBFC has assets under management of Rs 10,600 crore with nearly 60,000 customers. The investment is subject to regulatory approvals and satisfaction of other closing conditions.





READ SOURCE

READ  Can Britain keep its lockdown savings habit? This is Money podcast

LEAVE A REPLY

Please enter your comment!
Please enter your name here