Rakesh Jhunjhunwala to acquire sizable stake in Syska LED

Billionaire investor Rakesh Jhunjhunwala is set to pick a significant strategic stake in top lighting solutions firm Syska LED,

Jhunjhunwala, as per sources, 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 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.

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.