MC Exclusive| Clix Capital to see inbound interest from global PE firms, weighs public issue

stake sale

A transaction could be in sight at Clix Capital after its recovery from the pandemic-related asset quality issues.

Highly placed sources say there is inbound interest from global investors, including private equity firms and a few domestic non-banks in the company.

“The way we are reading India’s data, everybody wants a foot in the door to India, no one wants to leave this opportunity,” a source said on condition of anonymity. With a new investor coming in, it could give the much needed exit for Aion Capital invested in Clix Capital for over seven years.

Aion Capital is a fund of the US-based private equity major Apollo Global Management.

Sources aware of the development say bankers to the sale process have been appointed and in a few weeks the global fund would start the initial talks with potential investors.

“My sense is that in next 12-18 months, you will see an exit for Aion Capital and it will be a good exit,” source cited above said.

Aion Capital was a joint venture between Apollo Global Management and ICICI ventures, which afterwards shut operations in 2020 after the closure of the joint venture. Since then Apollo has managed the assets of Aion.

Aion is expected to pump in about $30 million into Clix Capital through rights issues to keep the overall leverage ratios of the non-bank intact.

This apart, it is gathered that Clix Capital is also exploring an initial public offering (IPO) in the next 18 months. Internally, a benchmark of reaching Rs 10,000 crore of assets under management (AUM) has been fixed as a threshold to prepare for the IPO.

“The company wants to solidly cross Rs 10,000 crore of AUM with sustainable profits that will be neither too low, nor too high, which is a respectable ROA number,” said people aware of the matter.

When asked about if the timing of the IPO and Aion’s exit would clash, sources said it was unlikely. “Aion’s exit may happen first and then the process of IPO will begin under the guidance of the new investor,” said the person quoted above.