Capri Stressed Assets Fund on Tuesday announced a Rs 375 crore investment consisting of debt, convertible debt and equity in Deepak Fasteners.
Ludhiana-based Deepak Fasteners, which manufactures Unbrako brand of fasteners, will be able to give an exit to some of its lenders through the investment, according to an official statement.
It claimed Deepak Fasteners is the largest industrial fastener manufacturer in the country and aims to emerge as a major player in the segment worldwide over the next few years.
Two of Capri's representatives will join the board of Deepak Fasteners, which is aiming to come out with an initial public offering in the next few years, the statement said.
"By realigning the capital structure and reducing debt to sustainable levels, the investment is structured to fuel the company's growth plan," Capri Global Group's founder Rajesh Sharma said.
This is the maiden investment for Capri Stressed Asset Fund which is managed by Capri Xponentia Managers.
Sharma said Deepak Fasteners is at the cusp of emerging as a preferred fastener partner for the Indian industry driven by its strong brand, manufacturing capabilities and the unfolding India growth story.
"We plan to capture a major share of the global market for industrial fasteners with an extensive and accessible worldwide marketing and distribution network," Deepak Fasteners' promoter Sanjeev Kalra said.
