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Motilal Oswal Private Equity raises INR 23 billion for its third fund

Mumbai 24-Oct-2018

Mumbai, 22 Oct 2018: India Business Excellence Fund-III (“IBEF-III”), growth capitalfunds managed and/or advised by MOPE Investment Advisors Private Limited(“MOPE”) is pleased to announce its final closing at over INR 23 billion (~US$320mn). The investors in the fund includes marquee domestic and globalinstitutions, large family offices and HNIs, sponsor (Motilal Oswal) and theinvestment team.

Investment strategy for IBEF III is to leverage the structural shiftin the Indian economy in the coming years. IBEF would endeavour toinvest in established mid-market businesses with strong growth characteristics,clear and mature business model/ strategy and a leading market position. Thefund expects to invest in about 12 to 14 companies, representing adequatediversification as well as a wide exposure to multiple high growth industrysub-segments.

IBEF III has already done three investments in financial services,consumer and manufacturing segment.

The first investment is with MAS Financial Services, a NBFC basedout of Gujarat with retail portfolio of 2-wheeler, CV and SME loans (~48% ofAuM) and on-lending portfolio of loans to other NBFCs and MFIs (~52% of AuM). IBEFIII invested INR 143 Crore in September 2017.

The secondinvestment is with N. Ranga Rao & Sons Private Limited (“Cycle” brand),largest Agarbathi Company in India based out of Mysuru that has maintained itsleadership position in the category for several decades. The Company has astrong pan-India sales and distribution, with a network of approximately 1.5million retail outlets.


The thirdinvestment is with Happy Forging Limited, a leading forging company and one ofthe largest Crankshaft manufacturer in India based out of Ludhiana. The Companyhas a forging capacity of 60,000 MT and machining capacity of 20,500 MT whichhelps serve customers across multiple end user industries including commercialvehicles, capital equipment, tractors, railways and exports. IBEF III committedINR 200 Crore in September 2018.


On this Mr.Vishal Tulsyan, Managing Director & CEO of MOPE commented, “We are extremelypleased to raise our third private equity fund (IBEF III) in a short span oftime on back of strong demand from our existing and new investors. India iswitnessing afast emerging class of domestic investors that provides the breadth and depthto Indian private equity industry as a whole. MOPE has a strong track-record ofexits and we are increasingly witnessing that entrepreneurs in non-metro citiesare becoming more open to external private capital and institutionalizing theircompany. IBEF III would continue to identify and partner with small to mid-sizecompanies in their growth journey to create value for all stakeholders.

About MotilalOswal Private Equity

MOPE Investment Advisors PrivateLimited (MOPE) is a subsidiary of Motilal Oswal Financial Services Limited(MOFSL), a diversified financial services group with businesses in Securities,Asset Management, Private Equity and Investment Banking. MOPE is currentlymanaging three growth capital funds i.e. India Business Excellence Fund (IBEF),India Business Excellence Fund II (IBEF II) and India Business Excellence FundIII (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. Out of the thirteen investments ithas already made ten 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$ 320 million) for IBEF III. Currently,investments are being made through IBEF III.


For further details contact:


Rohini Kute

Head, Corporate Communications,

Motilal Oswal Financial Services

Mob +91 9820196838

Mail: rohini.kute@motilaloswal.com

Alpesh Nakrani

Paradigm Shift Public Relations

Mob +91 98691 21167

Ph-   +91 22 2281 3797 / 98

Mail: pr.paradigmshift@gmail.com