Private Equity Fund Investments
IndiaRF to invest Rs.615-Cr in Setco Group's clutch biz spin out
India Resurgence Fund (IndiaRF), promoted by Piramal Enterprises Limited and Bain Capital Credit, has invested INR 615 crore (USD 83 million) in Kalol, Gujarat-based Setco Group. As part of the transaction, publicly listed Setco Automotive Limited (SAL) will transfer its clutch business into a subsidiary, Setco Auto Systems Private Limited (SASPL), into which IndiaRF will invest through a senior debt facility and a 35% equity stake. The investment proceeds will be used for growth capital and providing working capital to enable the businesses to grow on the back of anticipated recovery in the commercial vehicles market, meet the demand in the replacement market and re-finance / repay debt facilities. Setco Group is an automotive component company focused on manufacturing and marketing of clutches for commercial vehicles for original equipment manufacturers (OEMs) including catering to aftermarket for OEM brands and the independent aftermarket.
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