Tata Capital raises $800-mn for PE fund

Posted By: Religare
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Tata Capital raises $800-mn for PE fund
Going by the statement of Tata Sons" prime subsidy - Tata Capital in the previous year, the big financers recently said to have raised its private equity fund limit to $800 million.

The company justifies $580 million out of the $ 800 million to be raised from international investment groups out of which 40% has been funded by the Japanese alone. $200 million has been contributed by domestic financial firms and banks.

Tata Cap made a declaration back in 2010 for raising $1 billion in this funding by December 2011 and the plans seem to be going in the right direction henceforth. "We have already raised $800 million till March 2011, against our target of raising $1 billion for private equity fund by December 2011, says Tata Capital's Managing Director and CEO Praveen Kadle.

According to Kadle, the company has invested $150million with a view to maintain balance of their investments five years down the line and that they speculate will fetch up to 18% return on equity keeping the firm involved at least for a decade or so.

There are six major firms in which the company has invested their finance up till now. Tata Technologies is the first on list with a sum of $30 million invested in their account. The rest of the names also include one firm of Tata Group.

The segregation of $150 million as suggested by Kadle explains largest share coming to the consumers (48%) followed by IT which get 21% of investment. 12% has been invested in auto sector, 11% in engineering sector and a marginal 8% goes to healthcare. “Once we get $1 billion from good quality investors, we may go beyond that figure as we have already raised 80% by March", he added.

With a notion of topping the best private equity fund manager charts in India, Tata Cap shared its investment strategy to go in line with economic growth and focus on sectors like engineering, manufacturing, healthcare, education, services, technology, logistics and more except for estate and infrastructure which Kedle clearly mentions is not on their agenda at present.

Read more about: tata capital, bse, nse
Story first published: Friday, May 13, 2011, 12:32 [IST]
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