Temasek Holdings is in discussions to acquire a minority stake in Nash Industries, with the deal estimated at $120m to $150m, according to Business Standard. Some reports suggest the value could reach as high as $200m.

The Singapore state investor is competing with global private equity firms EQT AB, Kedaara Capital, Carlyle Group, and ChrysCapital, which are also reportedly considering bids. Avendus Capital has been appointed as adviser to Nash’s founders to manage the process.

Founded in 1971, Bengaluru-based Nash Industries is a contract manufacturing and engineering solutions provider with 11 plants across Bengaluru, Pune, and Chennai. In FY24, the company posted operating income of $148m, up from $134m the year before, while net profit declined to $9m from $11m. The firm, valued at about $240m last year, recently entered the clean energy space with the launch of a 600-megawatt lithium iron phosphate cell production unit through its subsidiary Nash Energy.

The proposed deal underscores private equity’s growing appetite for India’s precision engineering and auto components sector. Recent activity in the space includes TPG’s $150m investment in semiconductor firm Tessolve, ChrysCapital and InCred Growth Partners’ $144m funding of ILJIN Electronics India, and Bain Capital’s investment in Dhoot Transmission.

If completed, Temasek’s investment would further expand its exposure to India, which rose to more than $50bn earlier this year.

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