Canada's Ontario Teachers may invest around $150 mn in Kogta Financial; Creador, Morgan Stanley PE to partially exit

Canada's Ontario Teachers may invest around $150 mn in Kogta Financial; Creador, Morgan Stanley PE to partially exit

Leading Canadian pension Ontario Teachers Pension Plan ( OTPP) is likely to pump in around $150 million in Jaipur-based NBFC Kogta Financial in lieu of a minority stake, multiple people in the know told Moneycontrol on the condition of anonymity.

"Ontario Teachers is looking to pick up a stake of around 24 percent in the firm via this proposed deal which is a combination of primary and secondary issue of shares," said one of the persons quoted above.

A second person told Moneycontrol that an official announcement on the transaction was likely to be made shortly.

"Creador and Morgan Stanley Private Equity Asia plan to part exit in this deal. Both will continue to own more than 10 percent stake," this person added.

Kogta Financial, OTPP and the other investors couldn't be reached for an immediate comment. Moneycontrol will update this story as soon as we hear from them.

Other investors in Kogta Financial include Multiples PE and CPPIB.

"We have grown our AUM 2x during the last 2 years despite Covid and we see a strong opportunity for the Company to grow further to Rs 5,000 Cr in the next 2 years," the firm's MD and CEO Arun Kogta said post Series D investment, announced in March 2022.

(This is a breaking news story and will be updated shortly)