Funds managed and/or advised by MotilalOswal Private Equity commits INR 2,000 million in Happy Forgings Limited

Mumbai, 15^th October, 2018: India Business ExcellenceFund – III, funds managed and/or advised by MOPE Investment Advisors Private Limited(“MOPE”), have committed INR 2,000 million to Happy Forgings Limited (“HappyForgings”/the “Company”), a Ludhiana based company engaged in the Forging &Machining business. This is the first time the Company has raised privateequity capital.

Established in 1979 byParitosh Kumar Garg, the Company is one of the largest supplier for forged andmachined transmission and engine components to the automotive sector. Over thelast few years, Happy Forgings has emerged as one of the largest Crankshaftmanufacturer in India, a safety critical component for automotive industry. Itsproduct range also includes steering knuckles, transmission gears, suspensionassemblies, locomotive parts etc. The Company has a forging capacity of 60,000MT and machining capacity of 20,500 MT which helps serve customers acrossmultiple end user industries including Commercial Vehicles, Capital Equipment, Tractors,Railways and Exports.

Mr. Paritosh Garg & Mr. Ashish Garg, Promoters of Happy Forgings say,“Partnering with MOPE will help accelerate company’s aggressive growthplans and will help the Company foray into new products like front axle beams, largeengine crankshafts, oil & gas products. Their rich experience in automotiveand non-automotive manufacturing companies will add a lot of value to ourOrganization. The funds would be utilized for Greenfield expansion and additionof new forging presses which will help us serve our customers better, improveshare of value added products and create value for all the stakeholders of theCompany. MotilalOswal Investment Banking acted as a financialadvisor to Happy Forgings for the deal.”

Mr. Vishal Tulsyan, ManagingDirector and CEO of MOPE commented, “Manufacturinghas been one of the focus areas of our Fund as it is expected to benefit fromstrong underlying growth in the Indian economy as well as significant exportopportunities. Commercial Vehicles, Capital Equipment industry would be the keybeneficiaries of this trend and are expected to grow 3x-4x over next decade.Considering its leading position in forging industry and strong automotive& non-automotive client base, Happy Forgings is well-positioned to capturethe upcoming industry growth. Through this partnership with Happy Forgings, weintend to create a large, differentiated leader in India’s forging industry.”

About Motilal Oswal Private Equity

MOPE Investment Advisors Private Limited(MOPE) is a subsidiary of Motilal Oswal Financial Services Limited (MOFSL), adiversified financial services group with businesses in Securities, AssetManagement, Private Equity and Investment Banking. MOPE is currently managingthree growth capital funds i.e. India Business Excellence Fund (IBEF), IndiaBusiness Excellence Fund II (IBEF II) and India Business Excellence Fund III(IBEF III) focused on providing growth capital to mid-market companies,typically in the range of INR 100 – 300 Crore, across sectors. IBEF, launchedin 2007 is an INR 550 Crore (US$ 115 million) fund and is fully invested inthirteen portfolio companies across sectors such as food processing, bulkpackaging, power transformers and power infra enablers, ITES, financialservices, EMS, FMCG, auto components, etc. Out of the thirteen investments ithas already made eleven exits. IBEF II, launched in 2012 is an INR 1,000 Crore(US$ 155 million) and is fully invested in eleven portfolio companies acrosssectors such as financial services, life sciences, niche manufacturing andconsumption based sectors. On the back of its success of IBEF and IBEF II, MOPErecently raised INR 2,300 Crore (US$ 325 million) for IBEF III. Currently,investments are being made through IBEF III. 

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