Private equity firms CVC Capital Partners Ltd. and Carlyle Group LP are expected to be shortlisted for a 30% stake in India's Shriram Capital Ltd., The Economic Times reported, citing sources close to the matter. The stake is being sold by Piramal Enterprises Ltd. and TPG Capital Management LP.
In addition to CVC Capital and Carlyle, Advent International Corp., Blackstone Group Inc. and Brookfield Asset Management Inc. are in the race to buy the stake in Shriram Capital. The sale of Piramal's and TPG's combined stake in Shriram Capital could value the company at between 180 billion rupees and 200 billion rupees, and the sellers' combined stake at between 60 billion rupees and 70 billion rupees, according to the Sept. 11 report.
A source close to the development told the newspaper that Advent may not proceed with the deal after an affiliate of the group recently invested 10 billion rupees in India's Aditya Birla Capital Ltd.
CVC Capital and Carlyle declined to comment on the matter, while the sellers and other private equity funds could not be immediately reached for comments, the publication noted.
As of Sept. 10, US$1 was equivalent to 71.91 Indian rupees.
