MOPE Investment Advisors, part of Motilal Oswal Financial Services, is planning its third private equity fund of Rs 2,000 crore in January and announced a deal of Rs 100 crore to pick around 26 per cent stake in Ganesh Grains.
According to a PTI report: Ganesh Grains is an unlisted city-based staple company with a topline of close to Rs 500 crore.
“We will launch our third private equity fund of Rs 2,000 crore in January 2017. We typically take significant minority stake between 20 and 40 per cent in companies we invest in growth capital. We have taken a significant minority stake, but cannot disclose the details,” Managing Director & CEO, MOPE, Vishal Tulsyan was quoted by PTI as saying.
MOPE has two existing funds – Rs 1,600 crore in non-real estate investments and close to Rs 100 crore in Ganesh – and another scheduled for December.
MOPE also operates real estate funds.
Tulsyan said Ganesh Grains is a growing food company with strong regional brand and good growth potential.
Sources associated with the deal were quoted by PTI as saying that the stake is around 26 per cent with an enterprise valuation between Rs 400 – 500 crore.
Giving details of the deal, Managing Director, Ganesh, Manish Mimani was quoted by PTI as sayin, “Funds were not the primary objective in this deal. We strived for handholding for expertise with global exposure for our next phase of journey aiming to turn Ganesh into a national brand and explore export markets.”
“We aim to expand rapidly. MOPE’s handholding will help us achieve this smoothly,” he was further quoted by PTI as saying.
Initially, expansion in the eastern region would be taken up.
With a topline close to Rs 500 crore in FY16′ with atta, flour, semolina, porridge and ethinic flours, the city headquarted company aims for Rs 600 crore topline in the current fiscal.
MOPE has very recently taken significant minority stake in Bengaluru-based Dairy Classic Ice Creams.
Tulsyan said so far MOPE has invested in 23 companies and participates in their boards including Ganesh Grains.
He said that the new fund will be open for both offshore and domestic funds and in the last two funds share of offshore money was two-third including IFC as an investor.