Mumbai, July 3: Singapore-based Indivest Pte Ltd, an affiliate of Government of Singapore Investment Corporation Special Investments, will invest Rs 900 crore in S Kumars Nationwide Ltd’s unlisted subsidiary Reid and Taylor (India) Ltd for a 25.4 per cent stake.

Indivest will stump up Rs 790 crore in the form of equity at the commencement of the transaction itself.

As a result, GIC Special Investments will acquire a 23 per cent stake in Reid and Taylor (India) Ltd (RTIL).

The RTIL equity shares will be issued at Rs 695.18 per share to GIC Special Investments.

The remaining Rs 110 crore, in the form of warrants, will be converted into equity at the same price within 36 months, or at the time of an initial public offer whichever is earlier.

Post conversion, the Singapore entity’s stake will increase to 25.4 per cent with the remaining 74.6 per cent in the hands of S Kumars, the company said in its statement to the stock exchange today.

“The transaction provides us with significant opportunity not only to expand the Reid & Taylor business but also offers us a chance to execute several plans that we have in mind,” Nitin S Kasliwal, managing director and vice-chairman of S Kumars Nationwide, said.

“We plan to utilise the proceeds of the transaction to enhance manufacturing capacity, introduce new operating lines and add brands that have potential to further enrich our business portfolio,” Kasliwal added.