American Mission 1 Investments LLC is set to buy a significant minor stake in Shriram Asset Management Company Limited (Shriram AMC). This investment will help expand the company’s products The board of Shriram AMC in a meeting held today i.e. February 2 approved the strategic investment by Mission 1 Investments. Mission 1 will hold 23 per cent stake in the company after the completion of this transaction. Shriram AMC made such a statement Is.
Mission 1 Investments will buy compulsorily convertible debentures (CCDs) and warrants within 18 months at a conversion price of Rs 124.30 per share, which is 24 per cent higher than Tuesday’s closing price. The total value of the deal was not disclosed in the company’s statement, but a company source put the deal value at Rs 35 crore.
Shriram Credit Comany Ltd, the promoter company of Shriram AMC, will also invest Rs 50 crore in the business through Compulsorily Convertible Preference Shares (CCPs) at the same conversion price of Rs 124.30. However, these transactions will be subject to approval by the Securities and Exchange Board of India (SEBI) market regulator.
Rakesh Jhunjhunwala earned Rs 342 crore from this Tata stock in the post-budget market rally
Shriram Credit currently holds 68.67 per cent paid-up capital stake in Shriram AMC. After conversion, it will come down to 62.55 percent. On completion of the transaction, Mission 1 Investments will own 23 per cent and the rest will be held by common investors.
Shriram AMC’s statement said, “This partnership will further enhance Shriram Group’s focus and focus towards building an investment solutions platform that is focused on truly empowering the end consumer – both retail and institutional. “
Mission 1 Investments is an impact-focused investment partnership with a mission to generate strong financial returns for its partners along with investment and wealth creation.
The owners of Mission 1 Investments include veteran investors Gaurav Patankar, Amit Rajpal and Eric Wetlaufer. In addition the company’s team has over 120 years of work and investment experience in global markets.
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