Warburg Pincus and International Finance Corp Back Au Financiers

US private equity firm Warburg Pincus and International Finance Corp, an arm of World Bank, have jointly invested $50 million in Indian non-banking finance company, Au Financiers (India) Pvt Ltd, according to Reuters. The investment will be mainly used to fund future growth of the company, Au Financiers said in a statement.

Reuters – US private equity firm Warburg Pincus and International Finance Corp, an arm of World Bank, have jointly invested $50 million in Indian non-banking finance company, Au Financiers (India) Pvt Ltd.

The investment will be primarily used to fund future growth of the company, Au Financiers said in a statement.

IFC, which is an existing investor, will maintain its stake in the company at the current level post the fund infusion, it said.

The statement did not detail the stake Warburg Pincus will pick up in Au Financiers.

Warburg Pincus, which manages about $30 billion globally, recently sold 17.5 million shares in lender Kotak Mahindra Bank Ltd through stock market deals to raise about $170 million, sources told Reuters last month..

Last week, sources told Reuters that the private equity firm is among the funds, in talks with diversified Indian conglomerate Essar Group to invest about $150 million to $200 million in its IT services arm, Aegis Ltd..

Au Financiers, which provides secured loan products, has 150 branches across 7 states in western and central India.

Ernst & Young and Wadia Ghandy advised Au Financiers in the deal. KPMG and Amarchand Mangaldas were advisers to Warburg Pincus, the statement said.

Private equity funds invested $10.58 billion of capital across 501 deals in 2011 in India, up more than a fifth compared with $8.47 billion across 416 deals in 2010, according to data from industry tracker VCCircle.com.