Everstone, a leading private equity player with a focus on India and South East Asia, is likely to pick up a 14% stake in Hinduja group owned NBFC Hinduja Leyland Finance (HLF), for a consideration of R200 crore.
Hinduja Leyland Finance has been in talks with various PE players for more than a year. Everstone will be the first PE to pick a stake in the company.
Hinduja Leyland Finance, a three-year-old company involved in financing CVs, PVs, two-wheelers, construction equipment and three-wheelers, has an asset size of around R4,000 crore.
When contacted, S Nagarajan, managing director, Hinduja Leyland Finance, told FE: ?We entered into a deal on July 15. We
are issuing convertible preferential shares to Everstone, which would be converted in 90 days. This is the first time that the company is raising funds from a PE and the stake sale would be around 13-14%.?
To a question, he said: ?We
are aiming for an asset base of R6,500 crore in next one year from the current level of R4,000 crore. This will be possible with fresh funds from Everstone coupled with some internal accruals.
The company is also looking at raising another R350 crore through issuance of bonds (tier-II capital) during the fiscal, probably by the year end to augment the growth.?
To a question on the profitability of the company, Nagarajan said: ?We netted R92 crore profit during the last fiscal on a total income of around R500 crore. In the previous fiscal (2011-12), the profit was around R82 crore on a turnover of R304 crore.?
On an average the company is adding 15,000 customers across all the sectors and the total customer base is estimated to be around 180,000 now, he said. ?Except M&HCVs, we finance all the other companies products of LCVs, three wheelers, two-wheelers, construction equipment. On the M&HCV
side, we only finance Ashok Leyland products only,? he added.
R Seshasayee, chairman of HLF, said: ?I am happy that in Everstone, we found a partner who shares the same vision as the promoters.?