“Hubergroup India, one of the largest in manufacturing globally, is borrowing money to buy out many businesses from the German parent so that the Indian entity will become the flagship entity for the group,” a source said.
While talks with ICICI Bank, HDFC Bank, and Axis Bank are ongoing, the finalisation is pending. Among NBFCs, Tata Capital and Aditya Birla Finance are in talks, and discussions with ICICI Prudential Credit Fund and Axis Finance are underway in the credit fund space.
The proposed funding structure involves ₹500 crore from banks for working capital at around 9%, ₹500 crore from NBFCs for amortising loans at 10-11%, and ₹500 crore from a private credit fund for bullet loans at 13-14%. The deal could be finalised by next week, the source said.
Spokespersons of Hubergroup India, ICICI Bank, HDFC Bank, Axis Bank, and Tata Capital did not respond to requests for comment while an ICICI Prudential MF spokesperson declined to comment and Aditya Birla Finance could not be reached immediately for comment.