Mumbai: Ontario Teachers' Pension Plan Board on Wednesday announced an investment of Rs 1,230 crore in Cogta Financial for a significant minority stake in the non-bank lender.
Investment in a non-bank finance company (NBFC) specializing in vehicle and small business finance is a combination of primary and secondary investments, an official statement said.
The funds raised as primary capital will be used to drive growth in product offerings and expand regional presence, while the secondary capital will provide a partial exit to Cogta's existing institutional investors Morgan Stanley and Creators, it said.
Started in Rajasthan in 1996, the NBFC has now expanded across 10 states in India with over 225 branches and 5,000 employees.
It has assets under management (AUM) of Rs 4,800 crore across commercial vehicles, passenger vehicles, tractors, construction equipment and MSME loans.
Its AUM has grown by more than 40 percent every year since receiving its first institutional investment in 2016. Rahul Mukeem will join the company board as the nominee of the new investor.
"Our investment in Cogta underscores our commitment to identifying and supporting high-growth opportunities in India's vibrant financial services sector," said Deepak Dara, India head of Ontario Teachers' Association.
"His experience will help Cogta move into the next phase of its growth journey, deepening its reach in selected geographies and product segments," said Arun Kogta, managing director and chief executive of the company.
Kotak Investment Banking acted as exclusive financial advisor on the deal.
Investment in a non-bank finance company (NBFC) specializing in vehicle and small business finance is a combination of primary and secondary investments, an official statement said.
The funds raised as primary capital will be used to drive growth in product offerings and expand regional presence, while the secondary capital will provide a partial exit to Cogta's existing institutional investors Morgan Stanley and Creators, it said.
Started in Rajasthan in 1996, the NBFC has now expanded across 10 states in India with over 225 branches and 5,000 employees.
It has assets under management (AUM) of Rs 4,800 crore across commercial vehicles, passenger vehicles, tractors, construction equipment and MSME loans.
Its AUM has grown by more than 40 percent every year since receiving its first institutional investment in 2016. Rahul Mukeem will join the company board as the nominee of the new investor.
"Our investment in Cogta underscores our commitment to identifying and supporting high-growth opportunities in India's vibrant financial services sector," said Deepak Dara, India head of Ontario Teachers' Association.
"His experience will help Cogta move into the next phase of its growth journey, deepening its reach in selected geographies and product segments," said Arun Kogta, managing director and chief executive of the company.
Kotak Investment Banking acted as exclusive financial advisor on the deal.
