TPG in $162m Indian finance deal

The global private equity firm is to buy a 55% stake in Shriram Retail, having originally offered to acquire a 49% stake for $120m.

TPG will acquire a 55 percent stake in Shriram Retail Holdings for 8.05 billion Indian rupees ($162 million), following approval from the Indian government. 

The transaction will be executed via issue of 1.83 million equity shares and 1.54 million warrants convertible into the same number of shares of the company.

The investment is being made out of TPG’s Asian fund, which closed earlier this year on $4.2 billion and invests in Greater China, India, Japan, Australia and Southeast Asia.

In September, TPG agreed to pay $120 million for a 49 percent stake in the company. That deal would also have included a 26.7 percent stake in Shriram City Union Finance, a consumer finance company, excluding shares that TPG could further acquire in an open offer of shares.

In 2006, Newbridge Capital, an Asia-focused private equity firm established in 1994 by TPG and Blum Capital, invested about $100 million in Shriram Group subsidiary Shriram Transport Finance.