Promoters, Kotak PE to cut stake in a deal valued at Rs 800 cr
Bharat Vikas Group, a Rs 300 crore facilities management company, is attracting the eyes of global private equity investors in a deal being valued at Rs 800 crore. The promoters — led by Hanmant R Gaikwad & Umesh Mane, along with Kotak Private Equity are expected to reduce their stake in this company which can arguably be termed as a rags to riches journey.
Bharat Vikas Group (BVG) provides services such as mechanised housekeeping, landscaping & gardening, and security services to private and government institutions with the help of a 16,000-strong ready-to-move and trained and pan-India workforce. BVG has around 300 clients in India including Tata Motors, M&M, Wipro, Accenture, Whirlpool, ITC, HUL, Indian Railways, ONGC, Indian Navy among other.
Tata Motors is the big-gest client for BVG while the company broke into the big league when it bagged the contract to maintain the library at Parliament House. BVG’s other notable clients include residence and office of the Prime Minister and Rashtrapati Bhavan.
Investment bankers close to the deal indicates that a deal is expected to be finalised during the next one month. Kotak Private Equity has invested Rs 30 crore for a minority stake nearly three years ago. The management of Bharat Vikas Group confirmed that they are looking at various options to grow their business and a decision is expected to finalised shortly.
Senior officials in the private equity industry did confirm that they are looking at Bharat Vikas Group given the fact that it is an interesting proposition, but are a little wary of the valuation being claimed. “It is indeed a good scalable business. However, margins may be under strain going forward as the company seeks to expand,” noted a PE executive who has seen the proposal of Bharat Vikas Group. Avendus is understood to be advising BVG on this deal.