- ByStartupStory | April 3, 2024
In a move that underscores the robustness of India’s corporate landscape, the Competition Commission of India (CCI) has granted approval for several significant acquisitions, reflecting the buoyant investor sentiment in the country. Notable among these approvals is the acquisition of an 8% stake in MG Motor India by IndoEdge India Fund – LVF Scheme.
“MG Motor India is set to welcome IndoEdge India Fund – LVF Scheme as a notable investor,” said a spokesperson from MG Motor India.
IndoEdge India Fund – LVF Scheme, recognized as a large value fund catering to accredited investors, has been registered with the Securities and Exchange Board of India (SEBI) as an Alternative Investment Fund (AIF).
“The recent clearances by CCI highlight the increasing interest and confidence in India’s diverse sectors by both domestic and international investors,” commented an industry expert.
In addition to this significant development, the CCI has also given the green light to stake purchases in Pritam International Pvt Ltd by a consortium of investors, including ICICI Venture Funds, HCL Corporation, and Mirabilis Investment Trust.
“The investment involves the subscription of compulsorily convertible preference shares by entities like India Advantage Fund S5 I (IAF S5 I), HCL Corporation Pvt Ltd, Mirabilis Investment Trust,” stated a representative from Pritam International Pvt Ltd.
Furthermore, the International Finance Corporation (IFC), part of the World Bank Group, has received clearance from CCI to acquire a 6% stake in Northern Arc Capital Ltd.
“This investment is directed towards Series C Compulsorily Convertible Preference Shares (CCPS) in Northern Arc,” said a spokesperson from IFC.
Northern Arc Capital Ltd is an unlisted non-banking financial company (NBFC) focusing on meeting the credit needs of under-served households and businesses in India.
“The involvement of reputed entities like IFC in the Indian financial sector underscores the attractiveness of India’s NBFC segment to global investors,” remarked an analyst.
These recent clearances by CCI are expected to inject fresh perspectives, strategic insights, and financial strength into the recipient companies, contributing significantly to their growth and expansion strategies.
“As these companies integrate new investors into their strategic planning, they are poised for enhanced operational capabilities and market reach,” emphasized a market observer.
The role of CCI in facilitating these investments ensures that market competition remains healthy and conducive to innovation, further reinforcing India’s position as an attractive destination for investment and business growth.
