July 25, 2024: BPEA Credit on Thursday announced that it has invested Rs 250 crore in DMW Group to fund its growth initiatives that includes a green shoe option.
BPEA Credit’s flexible capital solution backs DMW Group’s growth initiatives by extending finance for capital expenditure, working capital, and acquisition financing for the foundry business, the company said in a release.
DMW is engaged in niche precision manufactured components space, and serves to multitude industry segments spanning automotive and agricultural, aerospace, flow control and railways.
Anupam Goenka, Managing Director, BPEA Credit said “The manufacturing industry in India is expected to grow rapidly, supported by government efforts and the China+1 strategy of large global organizations. We believe DMW is ideally poised to capture this growth trend in the coming years with a robust order book from domestic and global clients and we look forward to playing an active role in the company’s growth story.”
DMW recently acquired a controlling stake in a foundry business to integrate backwards into the value chain and increase the overall product offering to its customers, the statement added.
“We have been in discussions with the DMW Group over the last few weeks to understand the financing needs of the group and structure a flexible capital solution to fund the group’s growth plans while ensuring the business can service the same from its operating cash flows,” said Kaushal Ganeriwal, Managing Director, BPEA Credit.
“This investment aligns with our philosophy of sourcing stable investments in leading, high-growth, and established companies, not ordinarily available to investors, thereby generating attractive returns for our investors,” he added. The company also launched a short-term income fund of Rs 750 crore last month.
In the 11 years since its inception, the team has raised four funds and invested over US$ 1.1 billion across portfolio companies in multiple sectors, generating attractive investment returns for its investors across all its funds. BPEA Credit’s investment focus is on Asia ex-China, with an emphasis on India and SE Asia, representing some of the region’s fastest-growing yet underpenetrated credit capital markets.
