Warburg Pincus sells 25% in Capital First, GIC Singapore ups stake to 14%

COIMBATORE: Cloverdell Investment, an affiliate of private equity giant

Warburg Pincus

, has sold its 25% stake in Capital First, a non-banking

finance

company specialising in MSME (micro, small and medium enterprises) and consumer financing, to marquee foreign and domestic investors for around Rs 1768 crore.

The Capital First scrip, which hit its 52-week high of Rs 814.8 on May 10, slumped 5.32% to close at Rs 723.95 on the BSE on Wednesday.

Cloverdell Investment, however, continues to be the promoter of Capital First with a 36% stake. As part of this transaction, GIC, a sovereign wealth fund established by the Government of Singapore, has acquired an incremental 8.93% stake in Capital First taking its total shareholding in the company to 13.91%. GIC is a leading global investment firm with well over $100 billion in assets under management in more than 40 countries across the world.

“It has been approximately five years since Vaidyanathan (executive chairman of Capital First) invited Warburg Pincus to invest behind him and the management team at Capital First. Since then,

Vaidya

and the team have transformed and grown the company into one of India’s leading financial institutions specialising in providing financing to MSMEs and retail consumers,” said

Vishal Mahadevia

, co-head and managing director, Warburg Pincus India.

“It has been a terrific journey during which Capital First has created immense value for its partners and stakeholders,” he said. “Affiliates of Warburg Pincus continue to remain significant shareholders in Capital First and we welcome a group of new institutional investors to join us in supporting Vaidya and the management team as the company sets out on its next phase of growth,” Mahadevia said.

“We are confident about the next wave of growth in business and profitability and creating value for our new shareholders,” said V Vaidyanathan, executive chairman, Capital First.

Stay ahead in business with The Times of India. Check out Financial Calculators like SIP, PPF, FD, NPS and Mutual Fund Calculators.