Elevation Capital ups PIPE bet on non-bank lender

 Elevation Capital ups PIPE bet on non-bank lender

Elevation Capital, the Indian venture capital and growth-equity investment firm previously known as SAIF Partners, has increased its stake in a vehicle loan financier which is part of its PIPE, or private investment in public equity, portfolio.

The VC firm has bought bought 400,000 shares, or a 2.43% stake, in Muthoot Capital Services Ltd through bulk deals on stock exchanges. Muthoot Capital is part of non-bank lender Muthoot Pappachan Group.

The investment firm put in nearly Rs 16 crore ($2.2 million at current exchange rates), before accounting for transaction costs and statutory levies, in the company from its sixth fund, stock-exchange data showed.

The VC firm likely made its first of many investments in Muthoot Capital during the quarter through December 2019. The exact time and price details of the share purchases were not publicly disclosed.

It spent an estimated Rs 30-32 crore for a 3.94% stake in the first tranche and subsequently raised its holding every quarter.

In all, Elevation Capital has invested an estimated Rs 200-220 crore in the company, including the latest share purchases. This takes its stake to 9.5%, per The Capital Quest estimates.

Shares of Muthoot Capital declined 1.12% on the BSE on Monday to end at Rs 392.85 apiece. The BSE’s benchmark Sensex index fell 2.2%.

Elevation Capital’s other investments in the banking and financial services sector include a Rs 50 crore bet on Ahmedabad-based non-bank lender Arman Financial Services Ltd.

In 2019, it raised its stake in Mumbai-listed financial services and investment banking firm JM Financial. It invested over Rs 125 crore and owns a 1.59% stake in the company.

The firm’s other BFSI bets include IPO-bound National Stock Exchange, India’s largest stock exchange.

In October last year, Elevation closed its seventh fund — SAIF Partners India VII — at $400 million. In early 2018, it announced the final close of its $350 million from its sixth fund.

Elevation Capital has been investing in India for over a decade and has helped take a bunch of private firms, including MakeMyTrip Ltd and Just Dial Ltd, public.

Ankit Doshi

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