New Delhi, Oct. 29 -- Alternative investment firm True North said Wednesday it has invested Rs 360 crore ($40.8 million) in Innova Rubbers Pvt Ltd and Vee Tee Auto Manufacturing Company Pvt Ltd via its private credit fund.
True North led the investment in the two companies and was joined by two other funds and a few "larger reputed family offices", Kapil Singhal, managing partner for private credit at the firm, said in a statement. He didn't disclose the other investors' names.
"This transaction in particular is among the larger private credit deals in India and is a testament of our team's growing capabilities to deliver transactions of larger sizes to meet different business needs," Singhal said.
Innova and Vee Tee Auto were both founded by the Ambardekar, Mekal, and Bakshi families. The companies will use the investment proceeds to consolidate the promoters' stake to enable control and for better growth prospects of the two companies, True North said.
Innova, founded in 1969, specialises in designing and manufacturing automotive rubber-moulded and rubber-to-metal bonded NVH (Noise, Vibration and Harshness) products.
Vee Tee Auto, founded in 1988, specialises in the aftermarket trading of suspension parts, oils, filters, steering components, brake parts, and other auto components for two-, three- and four-wheeled vehicles. It also manufactures steering components for tractors.
Singhal also said that Innova is "well placed" to meet the rising demand for noise and vibration control solutions from original equipment makers while Vee Tee has one of the widest distributor networks in the country.
Altamount Capital Management acted as the strategic advisor to the promoters for this transaction.
Published by HT Digital Content Services with permission from VC Circle.