Global private equity major Warburg Pincus will invest Rs 1,800 crore in Piramal Realty for an undisclosed minority stake in the real estate arm of Piramal Group, making it one of the largest FDI deals in the sector.
"An affiliate of Warburg Pincus will invest Rs 1,800 crore or USD 284 million for a minority stake in the company," Piramal Realty said in a statement.
The proceeds will be used to expand Piramal Realty's portfolio and acquire marquee land parcels in and around the Mumbai, Piramal Group Executive Director Anand Piramal said.
As a part of the transaction, the New York head-quartered firm will get two seats in the Piramal Realty board, which will be reconstituted soon.
Founded in 2011, Piramal Realty has over 10 million sqft under development in prime areas of Byculla, Thane, Worli, BKC and Mulund of the metropolis.
Piramal Group chairman Ajay Piramal said "We are delighted to partner with Warburg Pincus for a second time, having invested in Piramal Healthcare in 1997, and now with Piramal Realty."
He added, "Warburg's investment and expertise will raise the level of real estate in the country to international standards, as it has done in other industries such as telecoms, financial services and pharmaceuticals."
Warburg Pincus India co-head Niten Malhan said, "We invest in companies with high growth potential and believes that Piramal Realty is best positioned to achieve leadership in one of the world's most attractive real estate markets."
Piramal Realty works with some of the world's leading architectural practices such as KPF, Fosters, SOM and Make and leading contractors such as L&T and Eversendai.
Warburg focuses on growth investing and has over USD 35 billion in assets under management in more than 120 diversified sectors.
Founded in 1966, Warburg has raised 14 private equity funds which have invested more than USD 50 billion in over 720 companies in over 35 countries.
Warbug's investment in the country include Ambuja Cements, Au Financiers, Bharti Airtel, Dainik Bhaskar, Havells, HDFC, Kotak Mahindra Bank, Kalyan Jewellers, Piramal Healthcare, and Sintex.
The USD 5-billion Piramal Group has interests in pharma, financial services, information management, glass packaging and real estate.