Indian tractor company seeks private equity investors
Indian tractor maker International Tractors (ITL) is reportedly in talks with global private equity investors to sell a 10% stake in itself for up to INR5 billion ($103 million).
L.D. Mittal, the chairman of Sonalika Group, a division of ITL, told The Business Standard that discussions are underway with three or four private equity firms. At present, 82% of the company is owned by its promoters, while Japan's Yanmar Group and JM Financial hold 12.5% and 5%, respectively. 3i and Citibank had each previously owned 10% of ITL, but these stakes have since been bought back by the promoters.
The capital would be used to build a manufacturing facility in Europe which will increase the company's production capacity from 60,000 units to 100,000.
Subsidiaries of ITL, including Sonalika and Solis, have recently increased their focus on emerging markets in South America through joint ventures with local companies. ITL already distributes vehicles in Africa and South Asia, as well as Australia and Canada.
In addition to tractors, ITL makes multi-utility vehicles, engines, farm machinery attachments, diesel gensets, auto components and pick and carry cranes.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.