The Asian Development Bank (ADB) has made a $10 million equity investment in Tata Capital Growth Fund II LP (TCGF II). Separately, Indigo Paints has garnered about Rs 348 crore from 25 anchor investors ahead of its initial public offering (IPO).
ADB invests in Tata Capital Growth Fund II
TCGF II is a private equity fund targeting growth capital investments in middle-market companies in India, including small and medium-sized enterprises (SMEs). It aims to invest in a portfolio of between 8 and 10 companies in sectors including financial services, health care, manufacturing, and technology.
The fund’s investment sizes are expected to average between $10 million and $35 million.
“Private equity has emerged as a critical source of growth capital for Indian companies and SMEs, which play a vital role in the country’s economic development,” said ADB Private Sector Investment Funds and Special Initiatives Division Director Janette Hall. “ADB is pleased to work with Tata Capital to support India’s SME segment, promote gender equality and governance best practices in investee companies, and also to promote private equity as a funding option.”
Indigo Paints raises $47.5m ahead of IPO
The company has allotted a total of 23,35,020 shares to the anchor investors at Rs1,490 apiece, which is the upper end of the price band, it said in a statement.
Among the major anchor investors were Government of Singapore Investment Corporation, Fidelity, Smallcap World Fund, Goldman Sachs, Nomura, Government Pension Fund Global, HSBC, Pacific Horizon Investment Trust, SBI Mutual Fund(MF), HDFC MF, ICICI Prudential MF, Axis MF, HDFC Life and ICICI Prudential Life.
Indigo Paints is looking to raise Rs 1,170 crore through the public issue, the price band of which has been fixed at Rs1,488-1,490 a share.