Bangalore, Feb. 2
H&M Global Selection, a Japanese fund based in Singapore, has invested $1.6 million in Uma Precision, a precision engineering solution provider.
The Uma Precision Managing Director and Chief Executive Officer, Mr Rajendra Kankaria, told newspersons that the fund will be utilised for expanding its current facility.
Uma has also acquired a Bangalore-based auto component firm, Gera Auto Industries for around Rs 2.5 crore.
Mr Kankaria said Uma Precision is also in talks with a few companies in Detroit, US for acquisition. "Once we have a foothold in the US, we will be able to bag contracts from foreign OEMs like General Motors and Ford," Mr Kankaria said.
Plans IPO:He said the company plans to float an IPO later this year for around Rs 35 crore to fund expansion and acquire new companies. The company expects a turnover of around Rs 90 crore during the current year. It expects to record a turnover of around Rs 350400 crore in another three years.
Currently, Uma Precision supplies components to OEMs such as Bajaj Auto and Tata Motor, Mr Kankaria said.
The H&M Global Principal Officer, Mr Chris K Hosokawa, said the fund size of its company is around $100 million, and half of that has already been invested. Its investment in Uma is the first so far in India. "Our focus in India are high growth mid-sized companies," he said.