Tata Cap raises Rs 3,500 cr PE

Tata Group investment firm Tata Capital on Wednesday announced that it has raised $800 million (Rs 3,500 crore) for its private equity funds and is looking at 50 to 60 investment opportunities.

Tata Group investment firm Tata Capital on Wednesday announced that it has raised $800 million (Rs 3,500 crore) for its private equity funds and is looking at 50 to 60 investment opportunities.

HT Image

“We have already raised $800 million till March 2011, against our target of raising $ 1 billion (Rs 4460 crore) for private equity funds by December 2011,” said Praveen Kadle, managing director and chief executive officer of Tata Capital.

“Of the $800 million, $220 million (Rs 980 crore) is from domestic institutions and $580 million (Rs 2,590 crore) from foreign institutional investors,” he said.

Last year the company had announced it would raise around $1 billion by December 2011.

Around 40% of the funds raised so far has come from Japanese institutional investors and the rest from South-East Asia, Europe and India, Kadle said.

Tata Capital has already invested $150 million (Rs 670 crore) in six companies with an average investment size of $25 million. It plans to make the balance of investments over the next three to five years and is looking at a return on equity of about 18%.

Of the six companies, two are Tata Group companies. “Of the $150 million, 11% has been invested in the engineering sector, 12% in autos, 21% in information technology and IT-related, 48% in consumer and 8% in healthcare,” said Kadle. He did not reveal the names and investment related financial details about the target companies.

He said the company would avoid real estate and infrastructure in its investments.