Page 27 - IACC Newsletter June 2013 Issue 11

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Pennsylvania headquartered Customers Bancorp Inc. to invest $51 Million in
New Delhi based Religare Enterprises Limited
US-based Customers Bancorp Inc. (CUBI) has agreed to invest $51 million (about Rs 300 crore) in various securities of
banking licence aspirant Religare Enterprises Ltd. The investments will take place through a combination of primary and
secondary market transactions.
The transactions involve a secondary purchase of Religare Enterprises equity shares from its promoters for $22 million,
investment of $28 million in compulsory convertible warrants to be issued by Religare on a preferential basis, and a $1-
million investment in new equity shares to be issued by Religare.
It is still not clear what Customers Bancorp’s eventual equity stake in Religare will be after these transactions. The CUBI
Board has already cleared the transactions. Religare’s board has now approved Customers Bancorp’s investments in the
Religare’s promoters — billionaire brothers Malvinder Mohan Singh and Shivinder Mohan Singh — had recently agreed
to shed a 22 per cent stake to enable the company to set up a non-operative financial holding company, in line with RBI
guidelines for licensing of new banks in the private sector.
Of the 22 per cent, the transaction with CUBI will result in the promoters offloading about 2.2 percent, it is learnt. “We
are delighted to have Customers Bancorp Inc. as an investor at Religare. CUBI’s management team expertise in global
banking will be extremely supportive in our banking foray. We are confident that the proposed association will further
strengthen Religare’s endeavor to create a distinctive and diversified financial services conglomerate that believes in the
Indian market’s long term growth potential,” said Sunil Godhwani, CMD, Religare Enterprises, in a statement.
Goldman Sachs fund invests $135 million in ReNew Power
A private equity fund run by Goldman Sachs has invested $135 million in unlisted wind energy firm ReNew Power Pvt.
Ltd, a company official said, making it one of the largest renewable energy investors in India. The Wall Street bank's
private equity arm had invested about $200 million in the same company two years ago.
Goldman Sachs private equity funds have invested more than $2 billion in capital since 2006 in the country, said Ankur
Sahu, co-head of Goldman Sachs' private equity business in Asia. ReNew Power has installed capacity of 200 MW as of
April 30, its website showed. The company aims to have 1,000 MW capacity by 2015, the site said.
Georgia based Gray Matters Capital invests in Bangalore based Unitus Capital
Impact investment bank Unitus Capital has raised an undisclosed sum from a consortium of investors, led by social
venture capital firm Gray Matters Capital, the financial services provider to the base-of-the-pyramid population
announced recently.
The proceeds from the second round of institutional funding will be used by the Bangalore-based investment bank to
expand its operations in India and South-East Asia, according to Eric Savage, co-founder and president, Unitus Capital.
"Gray Matters Capital's investment is a landmark event for UC. Bob Pattillo is the most active impact investor globally,
and we couldn't be more excited to have GMC join our shareholder group," Savage said.
Gray Matters Capital has participated in the capital raising round through its investment firm First Light Ventures. The
latter's investment portfolio in India includes domestic services provider and mobile payment startup
Beam Money.