Private equity firms Sandstone Capital and Sequoia Capital have picked up a minority stake of less than 10 percent in handset maker Micromax, for about Rs. 200 crore ($44 million), valuing the company at about Rs. 2,000 crore ($445 million).

Speaking to Bar & Bench Partner Gaurav Dani said, “Micromax has been a long standing client of IndusLaw and this is the second time we are advising them, previous being on TA Associates acquiring a minority stake in January this year”.

Micromax was advised by IndusLaw Partner Gaurav Dani along with Senior Associate Divya Varghese and Associate Kunal Arora.

Sequoia Capital and Sandstone Capital were both represented by Amarchand Mangaldas. Partner Reeba Chacko advised along with Senior Associate Sharad Moudgal.

The Deal Curry reports, that the funds raised will be utilised by Micromax for its expansion plans, as it plans to expand its handset business to Africa and Latin America. Micromax is planning for an IPO and has hired Citigroup Global Markets, Edelweiss and JPMorgan to be the lead bankers for the public offering to raise Rs. 600 to Rs. 800 crore. It will become the first Indian handset maker to go public.

Bar & Bench has previously reported about TA Associates acquiring a minority stake of less than 20% in the company Micromax, for Rs. 225 crore in January this year. This is the second PE placement in Micromax.

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