Warburg Pincus to invest US $110mn in Havells India

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Warburg Pincus to invest US $110mn in Havells India

Warburg Pincus to Invest US $110 million in Havells India

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Havells India Ltd, a US $1.2 billion enterprise and one of India's fastest growing electrical and power distribution equipment companies, today announced that Warburg Pincus , a global private equity firm and one of the largest investors in India, is investing US $110 million in the company. Havells will issue fresh shares and warrants to Warburg Pincus, representing approximately 11.2% of the fully diluted share capital of the company. 

Earlier this year, Havells acquired Dutch-based SLI Sylvania's lighting business to enhance their global presence. The acquisition provides access to a strong international brand and distribution network. Warburg Pincus' investment will be utilised to partly retire the debt raised during the Sylvania acquisition, and in strengthening the company's manufacturing capacity and distribution network to address the rapidly growing Indian market.

SSKI (a subsidiary of IDFC Ltd) was the financial advisor and Amarchand Mangaldas provided legal advice to Warburg Pincus on this transaction.

Mr. Qimat Rai Gupta, Chairman and Managing Director, Havells India, said: "We welcome Warburg Pincus as a significant shareholder of the company. We believe that this investment by a leading private equity investor clearly reflects the confidence of the global financial community in our business model and growth aspirations."

Mr. Anil Gupta, Joint Managing Director, said:  "This partnership provides credibility to our long-term objective of establishing Havells as a leading global player in the electrical product and power distribution equipment space. We look forward to Warburg Pincus' contribution on the board of the company."

He further added that the equity placement would provide the company with additional debt raising capacity.

Julie Johnson Staples, Head of Communications, Warburg Pincus, said: "Our investment in Havells India Limited is reflective of our confidence in the management team of the company, its strong brand and distribution capability, as well as in the growth potential presented by the electrical products and power distribution segment. We look forward to working together with Havells India's management team to help the company achieve its long term vision."  

Sourced From: Mutual Public Relations