The promoter group, led by Jayaram Banan, will continue to hold a majority stake in the restaurant chain. Private equity firm India Equity Partners (IEP) is investing Rs.160 crore ($35 million) in restaurant chain Sagar Ratna. The New York- and Mumbai-based PE firm will acquire 25 per cent stake in the chain as a part of this transaction. Jayaram Banan who started the chain will continue to hold a majority stake after the investment.
The transaction was closed last week. According to sources, the deal had been signed on June 22 and the funds were transferred on June 24. When contacted, India Equity Partners managing director Gaurav Mathur declined to comment on the deal. An e-mail query sent to Sagar Ratna CFO K S Suresh did not elicit any response at the time of filing this article.
The deal, which was in the making for a while, was initially being structured as a majority stake sale to India Equity Partners. However, as per the final deal Sagar Ratna chairman and founder Banan will continue to hold around 75 per cent stake post-investment.
India Equity Partners, which invests through a $350 million fund, has been actively scouting for investment opportunities in the fast-growing consumption theme of food and retail in India, including buyouts.
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