The private equity investors in engineering and construction services firm A2Z Maintenance & Engineering Services could be sitting on a multibagger with the company eyeing a public float that could value the firm around Rs 3,500 crore (~$760 million).

Three investors namely, Rakesh Jhunjhunwala, Beacon India Investors and India Equity Partners through Lexington Equity Holdings, have reportedly invested over Rs 130 crore in the company for a 40% stake. The IPO could value their combined holding at around Rs 1,400 crore or 10x returns. One of the private equity investors is reportedly looking to exit during the initial public offer, but it could not be confirmed independently.

At present, the founder Amit Mittal and his family, holds around 55% stake in the Gurgaon-based company, which will fall to around 50% post the issue. While Rakesh Jhunjhunwala is said to have acquired 22% stake in 2006, the other two private equity funds Beacon India and India Equity Partners had reportedly picked up minority stake over the last three years.

A2Z plans to raise around Rs 350 crore by selling around 10% stake through the public issue and is looking to file the draft red herring prospectus by the month-end.

The company that started in 2002 as a facility management services company, has evolved into an engineering, procurement and construction services provider to the power transmission and distribution companies. For the year ended March 2010, the company had consolidated revenues of around Rs 1,200 crore and expects to grow 25% this year.

The company has diversified into waste management and plans to scale up this business partly funded through the public issue. The proceeds of the IPO will be used to fund the company’s projects across renewable energy and waste management.

The bigger plan is that A2Z will invest about Rs 3,000 crore to set up a 500MW biomass power plant from municipal solid-waste by 2012. A possible listing can boost its plans to raise fresh funds for the bigger project.

A2Z could be looking at a very aggressive valuations if it is indeed targeting to raise Rs 350 crore by selling 10% stake. It could be looking to benchmark against BGR Energy that has more than double the revenues of A2Z and commands a market cap of around Rs 4,200 crore, or a little less than $1 billion.

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