Pennar is a Diversified engineering company, with whom we have a deal size of US$28 Million.

Eight Capital co-invested in the company to pay off their defaulted loans at a discount to face in lieu of mandatory converts that will convert into 26% of the equity and secured debt amortized over 48 months. The company is in the midst of transforming itself from a manufacturer of cold rolled steel strips to an original equipment ancillary manufacturer of auto-parts, white good parts and formed sections through forward integration. This has increased the EBITDA margin of the company from low single digits to 10%. We expect the EBITDA margins to continue to move up in line with other sauto parts companies in India.

Other developments in this portfolio company are:

• Turnaround & transformation of steel player into a market leading Infrastructure engineering company.
• Partial exit through repayment of debt. Significant upside due to multiple expansion in EBIDTA.