TPG takes 23% stake in India’s Shriram City Union NBFC

According to a regulatory filing, TPG India Investments I was allotted 13.42 million shares of SCUF following the merger of its investee Shriram Retail Holdings with SCUF.

SCUF shares closed at INR899.50 yesterday, which would value TPG's stake at around INR12 billion ($187 million). The PE firm bought an interest in SCUF in 2008 through its INR5.3 billion ($120 million then) investment in Shriram Retail Holdings, which in turn had a 16.34% stake in the financier.

SCUF is a deposit-taking NBFC which offers loans for small businesses, vehicle financing and against gold. For the financial year ending March 2013 it had total income of INR30.83 billion, up 50.71% year-on-year, while net income improved 32.94% to INR4.49 billion. The company has seen compound annual growth of around 37% over the past five years.

Norwest Venture Partners had a 7.61% stake in SCUF as of March 31. ChrysCapital, Bessemer Venture Partners and ICICI Ventures have all exited their investments in the company over the past year.

In May TPG exited its investment in another NBFC from the same financial services group - Shriram Transport Finance.

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• Topics
• South Asia
• Financials
• PIPEs
• TPG Capital
• India
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• PIPE