BanyanTree buys into Kanakadurga Finance

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Luthra & Luthra represented Kanakadurga Finance when private equity (PE) investor BanyanTree Finance recently acquired a significant minority stake in it through BanyanTree Growth Capital Fund II. The firm’s team comprised partner Deepak THM and senior associate Anshuman Mozumdar.

BanyanTree was advised by Cyril Amarchand Mangaldas, led by partner Vandana Sekhri.

Deepak THM told India Business Law Journal that “the investment from BanyanTree will enable Kanakadurga Finance to expand the size of its loan book”. He said the transaction needed the approval of the Reserve Bank of India and also required the parties to provide a public notice prior to closing.

Kanakadurga Finance – a non-banking financial company that provides auto and gold loans – was seeking its first PE investment with the objective of expanding the size of its loan book and increasing its credit rating. The company has branches in Andhra Pradesh, Telangana and Karnataka.

BanyanTree Growth Capital is a Mauritius-based India-focused PE fund that provides capital to mid-market firms.