India Resurgence Fund (IndiaRF), promoted by Piramal Enterprises Ltd and Bain Capital Credit, on Tuesday said it would invest up to Rs 615 crore ($83 million) in Gujarat-based Setco Group.

As part of the transaction, Setco Automotive Ltd will transfer its clutch business into a subsidiary, Setco Auto Systems Pvt Ltd (“SASPL”), into which IndiaRF will invest through a senior debt facility and a 35 per cent equity stake in SASPL, the fund said in a statement.

“Our partnership will drive a twofold strategy to restructure the company’s balance sheet as we also work closely with the promoters and management team to drive rapid revenue growth and sustainable improvement in profitability. IndiaRF continues to remain focused on providing long term strategic solutions that enable an effective turnaround to profitability for high-quality companies,” said Shantanu Nalavadi, managing director, India.

Setco Group is an automotive component company focused on manufacturing and marketing clutches for commercial vehicles for original equipment manufacturers (OEMs), including the aftermarket for OEM brands and the independent aftermarket. SASPL commands the largest share of medium and heavy commercial vehicles clutch business in India.