The Specified Undertaking of the Unit Trust of India (Suuti) has sold 36.58% stake in Mumbai-based NBFC Sicom for $100 million to US-based private equity fund JC Flowers. JC Flowers invests mainly in the financial services sector and distressed assets. ICICI Securities was the sole advisor for the transaction.
Suuti had earlier shortlisted JC Flowers, US-based SCSI and L&T Infrastructure before striking the deal.
Sicom offers fund-based and non-fund based products and services to Companies in the private and public sector and government bodies. Besides, Sicom has separate arms for mezzanine funding and private equities. It also has been providing techno-economic viability studies, detail project appraisals for both small and large projects and in some cases acquiring land on behalf of corporates to set up large projects. Sicom’s main thrust is lending, asset management, and advisory services.
Apart from JC Flowers, the other stakeholders of Sicom are the Maharashtra government (49%), UTI Mutual Fund (3.42%), employees (2%) and financial institutions and corporates (9%).
Sicom's net profit rose to Rs 59.11 crore in 2006-07 from Rs 33.98 crore in 2005-06. Its sanctions were up by 58% from Rs 871 crore to Rs 1,380 crore, disbursements rose 47% from Rs 799 crore to Rs 1,175 crore. Sicom has targeted a net profit of Rs 100 crore by this fiscal.
Sicom’s loan portfolio is at Rs 1,500 crore. It is also the nodal agency for foreign direct investment in Maharashtra.
Source: Financial Express