Gehlaut’s reduction in stake is part of the company’s path to institutionalisation after he stepped down as promoter in February 2023. From a 21% stake in December 2021, Gehlaut has reduced his stake to around 2% currently and is poised to totally exit the non-banking finance company he founded.
“The company now has no identifiable promoter. It is likely that in the next four to six weeks, three or four large global funds, which include its existing FII shareholders, will increase their stake in the company. Ultimately, by the end of the fiscal, these foreign funds will hold close to 60% in the renamed company,” said a person aware of the company’s plans.
Gehlaut had a 40% stake at its peak a few years ago which was diluted to 21.69% after the company raised ‘6,500 crore equity in 2016. In the last one and a half years since December 2021, he has reduced his stake by over 18% starting with a ‘1,443-crore block deal in December 2021 to funds controlled by US investment giant Blackstone Inc, Nomura, Morgan Stanley and sovereign wealth fund Abu Dhabi Investment Authority (ADIA), among others.
Blackstone and ADIA are among the foreign institutions in fray to increase stake in the company together with other giants like Vanguard, PIMCO, BlackRock, TreeTop asset Management. Such foreign institutional investors hold 18.52% in the company currently. “Gehlaut’s exit was also a precondition to these funds taking a majority stake in the company which is now almost complete. In the months to come, these funds will be majority owners in the company,” this person cited above said.
