TPG Capital Buys 15% in Shriram Properties

16 Nov 2011 • by Natalie Aster

Private equity major TPG Capital has picked up a 15% stake for $100mn (Rs 4.5bn) in Bangalore-based real estate developer Shriram Properties, the realty arm of the diversified Shriram Group. The transaction values the company at more than Rs 27bn. Shriram Properties would use the proceeds of the shares sale to foray into retail, hospitality and information technology parks, besides expanding its base in the residential space. In addition, the company will use the funds for acquiring stressed assets and is considering few assets in Chennai, Coimbatore and Bangalore.

Four-S Comment: This investment further deepens TPG’s connect with the Shriram Group, taking its investments in the group to almost Rs 25bn (roughly $550mn). It currently holds 49% shareholding in Shriram Retail and another 28% in Shriram Citi Union Finance. The private equity firm had acquired the assets of Vishal Retail for Rs 700mn through Shriram Retail. This makes it the one of the largest commitment by any fund to a single business house. Farallon Capital has committed ~$260mn to various businesses of Indiabulls. In another high value investment in Indian business house, Temasek and Goldman Sachs, along with other investors invested $1bn in Bharti Infratel, the tower subsidiary of Bharti Airtel.

Report Details:

Four-S Weekly PE Track 6th - 12th June, 2011
Published: June 2011
Pages: 8
Price: US$ 500.00

M&A Activities: PE activity for the week

• During the week ended 12th June, 2011 there were 4 PE/VC deals worth $137.3mn compared to 6 deals worth $58.6mn in the previous week.
• Out of the total, 2 were early stage, 1 was growth stage and 1 was late stage deal.
• The largest transaction during the week was $100mn investment by TPG in Shriram properties.

During the week ended 12th June, 2011, there were 6 M&A deals worth $19.5mn. In the largest deal during the week RPG Group upped stake in Australian coal mining company Resource Generation Limited (RG) by picking up another 4.8% stake for $10.75mn. RPG Group's Integrated Coal Mining Limited (ICML) had initially purchased a stake for Rs 450mn in the Australian Stock Exchange listed firm in September 2010.

More information can be found in the review “Four-S Weekly PE Track 6th - 12th June, 2011” by Four-S.

To order the report or ask for sample pages contact [email protected]

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