India Digest: Blackstone, GA eye Karvy Computershare; Goldman-Arpwood to bid for Karvy Fin

Blackstone, General Atlantic are in talks to acquire 74% stake in Karvy Computershare, while Goldman Sachs is partnering with Arpwood Capital in the race to non-banking finance company Karvy Finance.

Blackstone, General Atlantic in talks to acquire 74% stake in Karvy Computershare

Global private equity funds Blackstone Group LP and General Atlantic are in separate talks to acquire around 74 per cent stake in Karvy Computershare for roughly Rs. 2,100 crore, according to a report in The Economic Times.

According to the report, Australian share registry company Computershare is looking to sell its entire 50 per cent stake while Indian partner and owner of financial services firm Karvy Group C Parthasarathy will sell 24 per cent.

“Australian partner Computershare is looking at exiting its India business.  It will sell its 50% stake through this transaction,” one of the two persons quoted above said. “C Parthasarathy will also cede a significant minority stake to give the incoming investor a larger stake and control of the board.”

The deal once concluded, will value the country’s largest share registry company at around Rs. 2,800 crore.

Goldman partners with Arpwood to bid for Karvy Finance

Goldman Sachs is partnering with Arpwood Capital in the race to non-banking finance company Karvy Finance, which has a loan book of around Rs 2400 ($400 million), said a Times of India report, quoting sources.

The two companies have emerged as the front runners to acquire the NBFC, that focuses on lending to MSMEs, from the Hyderabad-based integrated financial services provider Karvy Group.

Karvy Finance has a network of 80 branches across 45 cities in the country and also dabbles in small commercial vehicle loans and gold loans, adding a consumer angle to the portfolio.

Karvy Finance has appointed investment bank MAPE Advisory to run the sale process. The RBI’s permission is required to acquire 26% or more of the paid-up equity capital of an NBFC.

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