Tata Capital to raise $500 Million for PE Venture
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Bangalore: Mumbai based non-banking financial company (NBFC), Tata Capital plans to raise $500 million as its first corpus of its private equity (PE) venture. With expansion such as investment banking, retail banking, corporate finance and retail loans on the mind, the NBFC will approach both domestic and international investors for the fund. The company is also leveraging its tie-up with Japan's Mizuho Securities to offer combined services such as investment banking, broking, PE and wealth management and thus strengthen its PE business. "Market conditions are tough and there are mid-tier companies that need funding for their expansion plans. We would also look at some sector-specific funds following the success of our first fund," said Praveen P Kadle, Managing Director and CEO, Tata Capital. Initially, they will look at companies that have linkages with the Tata Group. Later, in the due course of time, they will scout for opportunities beyond the Tata eco system. The company has also roped in former Managing Director of Centurion Bank of Punjab, Shailendra Bhandari to head its PE venture. Registered with the Reserve Bank of India (RBI) as a non-deposit taking NBFC, Tata Capital has been using its own capital and raising fresh funds through other financial instruments such as private placement of debentures. At the beginning of the current financial year, the company had a base of Rs 2,100 crore as its own capital and the rest it raised, however, now it is considering the external commercial borrowing (ECB) route to raise capital and is also planning to sell debt worth 10 Billion to meet fund requirements to execute its expansion plans.

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