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Motilal Oswal’s private equity arm will invest Rs. 200 crores for a significant minority stake in Happy Forgings Ltd, an auto parts maker, according to Vishal Tulsyan, managing director and chief executive at Motilal Oswal Private Equity (MOPE).
Happy Forgings, which is a Ludhiana-based company, was founded by Paritosh Garg and has a forging capacity of 60,000 metric tonnes (MT) and a machining capacity of 20,500 MT. It supplies transmission gears, suspension assemblies and locomotive parts, steering knuckles among others, across industries such as commercial vehicles, capital equipment, tractors, railways and exports.
Vishal Tulsyan said in a statement, “We have been tracking the company for five years and started talks to buy a stake early this year. The company founded by Paritosh Garg has the ability to set up projects with low capital expenditure, and excels in business development and professional management.”
Tulsyan also added that manufacturing has been one of the focus areas of MOPE as it is expected to benefit from strong underlying growth in the Indian economy as well as significant export opportunities.
As per Tulsyan statement, Motilal Oswal will be investing in the company through India Business Excellence Fund, it’s third and latest private equity fund. The fund made its close of about US$ 130 million in September last year and expects to achieve a final close of about US$ 325 million, the total fund size, in the next couple of weeks.
According to a report, the fund infusion will be the first private equity investment in Happy Forgings. Happy Forgings will utilize the funds to accelerate growth and expand into new products, such as front axle beams, engine crankshafts, and oil and gas products.
