HSBC has entered the bidding process to buy a controlling stake in Nuvama Wealth and Investment, joining a field of private equity suitors that are pursuing about a 54% holding valued at roughly $1.8 billion, people familiar with the matter told the Economic Times.
The bank is competing alongside Brookfield, Warburg Pincus, EQT, CVC Capital, Permira, ChrysCapital and General Atlantic, according to the report. Those groups, together with HSBC, submitted non-binding offers last week as PAG relaunched the divestment of its stake in Nuvama after a year-long hiatus.
PAG restarted the sale process last month and reappointed Morgan Stanley and JPMorgan as advisers on the transaction, the report said. PAG's holding in Nuvama is 53.98% and is held via two investment vehicles - Pagac Ecstasy and Asia Pragati Strategic Investment Fund. Based on Nuvama's current market value, that stake is worth about 1,733.6 billion rupees, which the report equates to roughly $1.8 billion.
With bidders having submitted non-binding proposals, the process may widen this week as at least two strategic investors were expected to join the contest, the report added. If the deal proceeds, the sale would also trigger an open offer for an additional 26% of Nuvama's shares.
The reported restart of the sale places several large private equity firms and a major European bank in direct competition for a majority holding in an India-listed wealth and investment business. The advisers reappointed to the mandate, Morgan Stanley and JPMorgan, will help manage the sale process and potential next steps should a bidder be selected.
Details on bidder terms, valuations beyond the headline rupee and dollar figures cited, and any preferred buyer were not provided in the report. The timelines cited in the report refer to non-binding offers that were submitted last week and to expectations of additional strategic bidders joining this week.
The matter remains subject to the formal sale process led by PAG and the advisers, and any completed transaction would carry the regulatory requirement to make an open offer for the prescribed additional stake in Nuvama.