TPG Capital, a private equity firm announced that it has acquired a considerable minority stake in wires and low-voltage cables manufacturer RR Kabel Ltd.
However, the financial details of the deal have not been disclosed yet. The PE firm is expected to acquire a 21 percent stake in RR Kabel Ltd and Ram Ratna Electricals Ltd, both part of the diversified Ram Ratna Group.
“Within the building materials segment, we have witnessed a growing consumer preference for established and organised brands like RR Kabel,” said Puneet Bhatia, co-managing partner at TPG Capital Asia. “This, combined with India’s strong housing market, positions the company well for significant growth.”
This acquisition might be a plus point for the company as TPG would help it to expand its product offerings and increase its market presence. Following the acquisition, Puneet Bhatia and TPG colleague Mitesh Daga will now join RR Kabel’s board of directors.
Talking about the growth and revenue, RR Kabel reported a revenue of Rs 1,615 crore and a net profit of Rs 86 crore in the recent financial year. The financial advisor of RR Kabel is Steer Advisors, whereas AZB & Partners and Cyril Amarchand Mangaldas acted as the legal advisors to TPG for the transaction.
TPG is a US-headquartered company which was founded in 1992. It has assets under management of around $84 billion globally across sectors including healthcare, financial services, manufacturing, retail and business process outsourcing.