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Writer Corp in talks to raise structured credit from KKR and Co

LiveMint logoLiveMint 27-04-2017 Anuradha Choudhary

Mumbai: Writer Corp., which provides relocation, warehousing, information management and cash management services, is in talks with American private equity investor KKR and Co. to raise structured credit, according to two people privy to the development.

“The private equity firm is investing approximately Rs230 crore in the form of structured credit in the Mumbai-based company,” said one of the two people cited above on condition of anonymity.

Incorporated in 1953, Writer Corp., is present in six countries, including India, with over 1,000 customers.

Writer Corp. was looking to raise capital for a long time to expand its cash management and relocation service businesses, said the other person on condition of anonymity.

Mint reported in December 2015 that the company was looking to raise Rs300 crore from private equity funds.

Spokespersons for Writer Corp. and KKR declined to comment.

The company claims it is the market leader for relocations in the Indian sub-continent, with presence in West Asia and Asia.

It also claims to be market leader in information management in India and among the top three players in the cash management space within five years of market entry.

The group started its cash management business, including ATM site selection, currency forecasting and reconciliation, and cash replenishment services, under the brand name Writer Safeguard in 2001.

It handles more than Rs3,500 crore worth of cash daily across 18,000 ATMs.

It has 12,000 retail points for various banks and retailers and has over 950 vans and over 7,000 employees, according to the company’s website.

Its real estate business includes commercial, residential and hospitality projects.

According to a recent report by PTI, cash and ATM management companies will soon be allowed 100% foreign direct investment (FDI) as they are not required to comply with the Private Security Agencies (Regulation) Act.

Cash management companies handle more than Rs40,000 crore of cash per day.

In 2015, the government allowed 100% FDI under the automatic route for white label ATM operations with an aim to promote financial inclusion.

The cash management space has in the past too seen interest from private equity firms.

In September 2015, Baring Private Equity Asia acquired the country’s largest cash management business CMS Infosystems from Blackstone Group Lp and the firm’s promoters for Rs2,000 crore.

In January 2015, VCCircle reported that private equity fund Ascent Capital was investing up to $30 million in Radiant Cash Management Services.

US-based Brink’s group is also planning to sell its Indian cash management business Brink’s Arya, The Economic Times reported in March that year.

Homegrown private equity firm CX Partners-backed Security and Intelligence Services (India) Ltd has filed a draft initial public offering, which could see the company raise around Rs1,000 crore.

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