Mumbai
India Resurgence Fund ("IndiaRF"), promoted by Piramal Enterprises Limited and Bain Capital Credit has made an announcement related to an investment of $830 million in Setco Group.
Setco Automotive Limited is a Gujarat-based Group. IndiaRF is going to invest using a senior debt facility and a 35% equity stake in SASPL. The proceeds of this investment will be used to promote the working capital so that the business can grow on the back of an anticipated recovery in the commercial vehicles market, repay debt facilities, and meet the demand in the replacement market.
According to Shantanu Nalavadi, Managing Director, IndiaRF, the company is pleased to enter into a partnership with Setco Automotive which will help to enhance its market leadership. This partnership will also drive a twofold strategy to restructure the balance sheet of the company. The company is focused on providing long-term strategic solutions that enable an effective turnaround to profitability.
According to Harish Sheth, Chairman & Managing Director, Setco Automotive, the group is excited to partner with IndiaRF. He also said that the group is looking forward to leveraging the global expertise of the company in restructuring and turnarounds. He feels that this partnership is going to bring significant strategic operational improvement in both SASPL and Lava Cast.
Setco Group is a technology-driven automotive company that focuses on the manufacturing and marketing of clutches for commercial vehicles for OEMs. The group has the largest share of Medium and Heavy Commercial Vehicles clutch business in India. SASPL has diversified into the tractor market as well. It is backward integrated as well and manufactures castings through state of art plants.
Source – Market Screener
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