VCCircle

IDFC Private Equity has made an investment of $65 million (Rs 260 crore), probably its largest so far, in the Chennai-based dry bulk shipping company Goodearth Maritime (GML), reports The Economic Times. IDFC would pick up around 15-20 per cent stake in the company, which is a part of the diversified Archean Group with interests in ores, minerals, industrial chemicals and renewable energy. IDFC private equity is making the investment from its $440-million second fund. o3 Capital Advisors has advised GML on the deal.
GML is foraying into on-shore and off-shore oil drilling sector and also planning a huge investment in a greenfield shipbuilding yard at Cuddalore. The 405-hectare shipyard is being built along with Korea Maritime Consultants (Komac), a South Korean entity of naval architects and marine engineers. GML's shipyard is expected to require a total investment of around $500 million in the first phase.
IDFC PE has invested in several logistics companies like Sical Logistics, and Delhi Assam Roadways, besides GMR Infrastructure, Delhi International Airport, L&T Infrastructure Developers and Gujarat Pipavav Ports, among others. IDFC PE is in the process of raising its third fund of $600-700 million, which is expected to close by 2008.
Update: The company has officially announced the deal today that IDFC PE would be investing Rs 265 crore in GML. The company intends to use these funds to fund its growth plans for the green-field ship building yard coming up in Tamil Nadu, as well as for its foray into the on-shore and off-shore oil drilling sector. The shipyard is expected to require a total investment of around $500 Million in the first phase, with a capacity to build about 25 to 30 ships a year, including VLCCs.