Indian private equity firm True North has received a green light to purchase a stake in lender Federal Bank’s financial services unit, Fedbank Financial Services Ltd (FedFina), for 168.6 crore rupees (about $24 million).
In May, True North agreed to acquire a 26 percent stake in FedFina, offering 40 million equity shares, with a value of $0.14 each, corresponding to 17.40 percent stake of FedFina.
With the deal, FedFina will expand its capital base primarily to support its growing asset business, grow its branch network and also diversify its funding sources.
In August, True North raised $600 million for its latest fund, fund VI. In the past 19 years, the firm has invested in more than 40 Indian businesses.