The Hindu Business Line : Tata Capital picks 20 pc in IARC

Bangalore, Sept. 30 Tata Capital has picked up a 20 per cent stake in the International Asset Reconstruction Company Private Ltd promoted by HDFC Ltd and City Union Bank

Speaking to presspersons here, the Managing Director, Tata Capital, Mr Praveen Kadle, said: “Our model is to work with people who have experience and who would like to come along as investors.” He ruled out a direct entry by Tata Capital in the distressed asset take-out business. IARC is currently in the process of raising its paid-up capital to Rs 100 crore.

Private equity fund

Tata Capital was also launching its private equity fund, he said. The corpus for the fund was yet to be finalised. The fund, which would comprise three distinctive components – mid-sized fund, technology venture fund and growth fund — would invest in companies within the “Tata Group ecosystem.” Equity support for these companies, he said, could be up to 40 per cent of the paid-up capital.

The company has built an asset book of Rs 6,000 crore in the very first year of business. At least 4,000 crore of the assets were in the form of commercial funding, both short and long-term resources to medium-scale enterprises that have a relationship with the Tata group companies.

About Rs 1,600 crore of the assets were to the retail sector. Currently, the retail funding was mostly in the auto financing sector.

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