Havells India Ltd said private equity firm Warburg Pincus LLC will pick up an 11.2 percent stake in the firm for $110 million.
“It will be carried out through a combination of warrants and equity. The warrants will be redeemable in the next 18 months,” a company spokesman said.
The Economic Times said on Monday that the equity would be priced at 625 rupees a share and the warrants at 690 rupees.
Shares in Havells closed 608.45 rupees Friday on the Bombay Stock Exchange.
The electrical and power distribution equipment company is raising funds to retire a part of the debt taken to finance its $300 million acquisition of SLI Sylvania's lighting business and for capital expenditure.
“Seventy million dollars will be used to retire debt and the balance will be used for the expansion,” the spokesman said.
Havells acquired Frankfurt-based firm SLI Sylvania's lighting business in March. ( Reuters)