MUMBAI: The Ontario Teachers' Pension Plan has picked up a minority stake in the retail-focused non-banking firm Kogta Financial at a consideration of Rs 1,230 crore ($148 million) by part buying the stakes from Morgan Stanley and Creador.
The Ontario Teachers' Pension Plan Board has acquired a significant minority stake in Kogta by investing Rs 1,230 crore ($148 million), the company said in a statement without disclosing the stake percentage.
Kogta, founded in 1996 in Jaipur, has institutional backing from funds managed by Creador, Morgan Stanley, CPP Investments, and Multiples Alternate Assets.
The funds raised will be used as primary capital to drive growth across its product offerings and expand regional presence. It will also provide partial exits to Kogta’s existing institutional investors, Morgan Stanley and Creador, the statement said.
As part of the investment, Rahul Mukim, the nominee of the Ontario Teachers' Pension Plan, will join the Kogta board.
Kogta operates 225 branches across 10 states and has a loan book of Rs 4,800 crore across commercial vehicles, passenger vehicles, tractors, construction equipment, and MSME loans, Arun Kogta, the chief executive, said.