Bain lines up $125m maiden Indian investment

Bain Capital Partners is to invest up to INR5.8 billion ($125 million; €87 million) in Bombay Stock Exchange-listed Himadri Chemicals & Industries, marking its first investment in India.

Kolkata-based Himadri Chemicals is a chemical products manufacturer focused on coal tar and its derivatives. Its products are used in the making of aluminium, steel, tyres, building products and lithium batteries. 

Bain Capital will initially invest INR2.52 billion for a stake of 15.39 percent in the company. This transaction, which is subject to shareholder approval, represents a purchase of 6.31 million company shares at INR400 per share, according to a statement from the private equity firm.

As Bain intends to acquire a stake larger than 15 percent in Himadri, Indian takeover regulations are triggered and the firm will also make a mandatory tender offer for another 20 percent stake, the statement noted. That offer will represent a further INR3.28 billion investment from the firm.

This is Bain’s maiden deal in India since it hired private equity and investment banking veteran Amit Chandra to found its Mumbai office in early 2008. Chandra currently leads a five-strong team in the country.

Citigroup Venture Capital International, the venture capital wing of the US banking giant, and International Finance Corporation, the World Bank’s private investment arm, are also key stakeholders in Himadri Chemicals, the company's statement noted.

UBS Investment Bank and Indian financial services firm Enam respectively advised Himadri Chemicals and Bain Capital on this transaction, which is due to be voted on by shareholders at an extraordinary general meeting scheduled for 29 January.