Argus Partners Advises Piramal And Bain Capital Credit Backed IndiaRF In Their Investment Of Upto $83 Million In Gujarat-based Setco Group.

The Setco Group is an automotive component company (formerly backed by New Vernon Capital) focused on manufacturing and marketing of clutches for commercial vehicles for original equipment manufacturers (OEMs) including catering to aftermarket for OEM brands and the independent aftermarket. Setco Auto Systems Private Limited ("SASPL") commands the largest share of medium and heavy commercial vehicles clutch business in India.

As a part of the transaction, Setco Automotive Limited has transferred its clutch business into SASPL, a subsidiary, into which IndiaRF invested through a senior debt facility and 35% equity stake

The investment proceeds will be used for growth capital and working capital to enable the businesses to grow on the back of anticipated recovery in the commercial vehicles market and meet demand in the replacement market and re-finance/ repay debt facilities.

IndiaRF's investment will also bring in significant strategic operational improvement in both SASPL and Lava Cast Private Limited (a group company of SASPL).

The Argus Team comprised, Krishnava Dutt (Managing Partner), Aastha, Adity Chaudhury, Arka Majumdar, Gaurav Singhi (Partners); Swaraj Narula, Tushnika Dayal (Senior Associates) and Aditi Gupta, Aditi Kashyap, Gayatri Dabir, Mishika Ravishankar, Aryan Mohindroo, Tweesha Gosar and Vansh Aggarwal (Associates).

Wadia Ghandy & Co. advised the Setco Group.