Private equity (PE) firm CX Partners is close to buying 20% stake in electrical products company NTL Electronics India for around Rs 120 crore, said two persons familiar with the matter.
Promoted by Arun and Praveen Gupta, NTL Electronics manufactures electronic ballasts used to make energy-efficient CFLs. The Noida-based privately held firm supplies to companies such as Osram, Philips, Surya Roshni, Crompton Greaves among others.
When contacted CX Partners’ chief Ajay Relan declined to comment on the development. NTL Electronics managing director Arun Gupta confirmed the firm is raising money from CX Partners but declined to divulge details of the transaction.
“We will use the funds to expand our existing production facilities and R&D capabilities besides financing plans to foray into another energy-efficient lighting range of LEDs,” he said. The company plans to launch the initial public offer by 2013, Mr Gupta said.
NTL currently has electronic ballasts-making plants in Dehradun, Roorkee and Noida. The company has a headcount of 3,500 people. It has been posting CAGR of over 80% over the past five years and clocked revenues close to Rs 400 crore last year.
This would be the second investment by CX Partners out of its maiden $500-million fund. Established in August 2008, the PE firm was floated by Ajay Relan, former managing director of Citigroup Venture, Capital International. It made its first investment by acquiring 8% in sponge iron maker Monnet Ispat for Rs 150 crore in April this year.
PE firms have been active in $2-billion Indian CFL market, that is growing at 35% year-on-year. Warburg Pincus holds 14.5% stake in Havells India, a diversified electrical equipment and lighting products company. Another PE firm Actis picked up 66% in Halonix in early 2007.
Source: Economic Times