Tata Capital to get into private equity biz by end of Q1 FY’10

Tata Capital financial services firm has a proposal of introducing its private equity business by the end of first quarter of the next financial year.

Tata Capital Managing Director and CEO Praveen P Kadle informed reporters, "We will be launching our private equity business by the end of first quarter of the next financial year".

The funds for PE business will be provided by Tata Capital's own and third-party investments.

Kadle notified that the company is having talks with domestic and international players for third-party investments in the PE business.

Tata Capital Head Investment Banking J Niranjan told, "The first round of funding by the PE firm will be around 350-500 million dollar ....the fund will invest across all sectors".

Tata Capital, is a wholly-owned subsidiary of Tata Sons, had previously selected Shailendra Bhandari as head of its private equity business.

Bhandari, earlier had held the position of Managing Director and CEO of Centurion Bank of Punjab, and has also held leadership positions in Citibank, HDFC Bank and in ICICI Prudential Asset Management Company, he was the CEO.

Kadle added the PE business in the beginning would look at the non-listed companies in the Tata ecosystem and divestment opportunities after that.

Currently, Tata Capital has launched public issue of secured non-convertible debentures (NCDs) through which it is likely to raise at least Rs 500 crore.

In the issue there is an option to retain over-subscription of up to Rs 1,000 crore and the closing date of the issue will be February 24 or the date might be decided at the discretion of the Committee of Directors of Tata Capital.