The ace investor, Rakesh Jhunjhunwala, is likely to have signed a memorandum of understanding to pick the stake in the top lighting solutions company.
Billionaire investor Rakesh Jhunjhunwala is set to pick a significant strategic stake in top lighting solutions firm Syska LED, CNBC TV 18 reported on August 9.
Jhunjhunwala, as per the report, is likely to have signed a memorandum of understanding (MoU) to pick the stake in the company.
The development comes days after it was reported that Syska LED has entered into negotiations with Crompton Greaves Consumer Electrical (CG Consumer) with the latter eyeing an acquisition to beef up its lighting portfolio.
CG Consumer was in an advanced stage of talks to buy the Syska LED Lighting business, CNBC TV 18 reported on July 23, with sources adding that the negotiations were going on around Rs 2,000 crore of deal value.
“Syska LED’s business was hit due to the outbreak of COVID-19 and HDFC Bank as lead lender is now trying to find a buyer for the firm due to its debt burden. Alternatively, the firm may also explore a fund raise through the private equity route by selling a minority stake, though this has been attempted earlier,” a person privy to the development had said.
Notably, Syska LED, a part of Pune-based SSK Group, was founded in 2012 and its portfolio also includes smaller verticals like accessories, consumer home appliance, wires, cables and personal care products. The company had gained popularity after a successful TV advertising campaign featuring late Bollywood actor Irrfan Khan.
In November 2019, there were reports that Syska LED was in talks with private equity firms to sell a minority stake and deleverage the firm’s balance sheet.
Over the years, Syska has emerged as synonymous with LED lights in the domestic market. According to industry estimates, the Indian LED lighting market is expected to grow at a CAGR of 24.3 percent between 2020 and 2025.Apart from Syska, other key players in the domestic LED lighting segment include Havells, Bajaj Electricals, Crompton Greaves Consumer, Wipro Lighting and Philips.
