Motilal Oswal Private Equity has sealed its second investment in a week by picking up a stake in Indian SME lender Intec Capital.
The firm paid INR373m ($6.8m) for about 666,000 equity shares and 274,000 compulsorily convertible preference shares according to an Indian securities filing, giving it a 16.92 per cent stake.
Motilal made the investment through its India Business Excellence Fund II, a $150m-targeting vehicle it is currently raising. The fund has already picked up about $120m.
Last week Motilal invested about $56m in concrete company Magicrete Building Solutions to back its expansion, sales and marketing plans.
The firm, a wholly owned subsidiary of Motilal Oswal Financial Services, launched its first fund in 2007 and raised 125m.
That vehicle is fully invested and has thirteen portfolio companies across sectors including food processing, bulk packaging, power transformers and power infra enablers, ITES,financial services, EMS, FMCG and auto components.
ICICI Securities acted as the exclusive financial advisor to Intec Capital in the latest deal, while Amarchand & Mangaldas & Suresh A Shroff & Co acted as legal advisor to IBEF II and IBEF IIA.
Udwadia Udeshi & Argus Partners acted as the legal advisor to the company.
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