Canada Pension Plan Investment Board (CPPIB) is proposing to invest in Mytrah Energy (India) Pvt. Ltd which will enable it to repay a $277 million debt it had raised from the Piramal Group.
Canadian pension fund CPPIB is expected to invest at least $500 million in Mytrah.
Mytrah has been in talks with CPPIB for a couple of months now. They want to invest the money for growth capital. But part of it will be used to buy out the high-cost debt the company had raised last year. The rest will be used to fund business growth. However, the transaction closure is still some time away.
In September 2017, Mytrah had raised ₹1,800 crore ($277 million) from the Piramal Group through non-convertible debentures. It had used the money to provide exit to existing investors, including IDFC Alternatives Ltd and AION Capital, Merrill Lynch and Goldman Sachs, besides meeting its growth capital needs.
The transaction might see CPPIB ending up with a majority stake in the company, given the size of the investment.
Reference- Livemint, ET, VCCricle