International Finance CorporationNSE 0.00 % (IFC), the investing arm of the World Bank, has invested $100 million in India Resurgence Fund – a joint venture between PiramalNSE 0.05 % Enterprises Limited and Bain Capital. The total fund size is $300 million to be invested capital in the form of debt and equity in distressed assets and special situations in India.
“We closed our first fund, which will invest in stressed assets,“ said Ajay Piramal chairman Piramal Group.
“We and Bain have a joint venture. I am very happy to say that IFC has also put $100 million on Thursday. The fund is $300 million.”
Piramal and Bain have invested in $100 million each to invest in businesses that require balance sheet restructuring with a focus on debt restructuring in organizations with strong growth prospects linked to infrastructure and consumption needs.
The fund is looking to buy assets in cement, steel and power. It is also looking to invest in hospitals, pharma, chemicals, paper, hotels and auto components.
Piramal Bain consortium had backed Dalmia BharatNSE -0.40 % to buy Binani Cement. However, Ultratech raised its bid and approached the National Companies Law Tribunal to stall the Dalmia Bharat-Bain Piramal Resurgence Fund consortium from taking over the assets.
“We are looking at talking to people just before going to NCLT,” said Piramal. “After we do a couple of deals, we will go into the market and start raising more rounds of funds. The quality of investors – whether us, Bain or IFC – these are top class investors. If you do a couple of deals, it will give confidence.”
