BanyanTree Growth Capital II LLC, a structured private equity fund managed by BanyanTree Capital Advisors, has invested $5 million (Rs 33 crore) against an equity stake in Gujarat-based Rotomag Motors and Control Pvt Ltd, said a person in know of the development.
Confirming the investment, a BanyanTree official said, “This is our first investment in Rotomag Motors and seventh in India through our second fund. As a private equity investor, we always lend out a helping hand to companies who are in need of funds to expand.” He, however, did not comment on the deal amount.
Rotomag Motors, which currently specialises in making solar pumps, electric drive systems and industrial motors, will use the funds to expand its existing operations and manufacturing facilities.
The company also operates a joint venture with Italian company Motive Srl in India that makes AC motors and worm gearboxes.While Rotomag Motors and the Indian promoters hold 51% stake in the JV, Motive Srl and the Italian promoters hold the balance 49%.
BanyanTree Growth Capital II is a $175 million PE fund which provides structured investments to small and medium enterprises in India across sectors including healthcare, food, power and education. The fund largely invests in companies that have revenues in excess of $20 million, have reasonable levels of leverage and adhere to IFC performance standards.
In the past, the PE firm has invested in companies like Kolkata-based hospital chain GPT Healthcare Pvt Ltd, coaching services provider MT Educare, packaged food firm Nilon’s, renewable power firm Atria among others.