Infra.Market in late talks to acquire Halonix

This year was an eventful one for the online procurement platform Infra.Market. While the company went unicorn in February with a $ 100 million round led by Tiger Global, it is in late-stage talks to raise another $ 4 billion round. Inundated with cash, it’s in the market for acquisitions too.

Infra.Market had already acquired RDC Concrete in September for 100 million US dollars. The company is currently in talks to acquire electrical company Halonix, said three people who were aware of the details of the talks.

“The talks between the two companies have been going on in the last few months and have reached an advanced stage. Infra.Market also gave Halonix a term sheet, ”said one of the people who asked for anonymity.

According to the above people, the value of the deal will be between $ 90 million and $ 100 million, or Rs 675 billion to 750 billion.

Halonix is ​​an electrical company that makes LED, lighting fixtures, home décor, commercial and industrial lighting, and street lighting along with halogens and high pressure discharge lamps, fans, and IoT-enabled devices. It was bought by Actis in 2016 by Hong Kong-based NewQuest Capital.

Inquiries to Halonix, and NewQuest Capital did not result in an immediate response. We will update the story as soon as they reply.

Unlike most of the herds of unicorns this year, Infra.Market is a profitable company with a substantial income. For the fiscal year ending March 31, 2021, it is generated revenue of Rs 1,243 crore compared to Rs 351 crore in FY20.

Despite the disruption caused by Covid in FY21, Mumbai-based Infra succeeded. Market to increase its profit fourfold to around 36 billion rupees. The company had already raised $ 200 million in two funding rounds in 2021 and is in talks about another round valued at over $ 4 billion.

Halonix’s scale has been virtually unchanged since FY19, when the company recorded Rs. 404 billion in operating income. While income was Rs 445.60 billion in FY20, operating income fell 2% to Rs 436.5 billion in FY21. The Noida-based electrical manufacturing company is owned by Mauritius-based private equity firm NewQuest Capital Partners, which owns 99.42% of the shares in Halonix.

According to its annual accounts with RoC, the company’s profit also decreased 8% to Rs 12.25 billion in FY21 from Rs 13.33 billion in FY20. However, Halonix improved its operational efficiencies and its cash flow from operations also improved from outflows of Rs.4 billion in FY20 to inflows of Rs.32.2 billion in FY21.