Bessemer Venture Partners has picked up a stake worth Rs 100 crore in the initial public offering (IPO) bound IL&FS Transportation Networks (ITNL). Bessemer, through its unit Bessemer India Capital Holdings II Ltd, has picked up a 2.41% stake, valuing ITNL at nearly Rs 4,150 crore.
Mumbai-based ITNL is into project development, implementation, construction management, operations and management of toll roads besides advisory services related to road projects. IL&FS Financial Services was the advisor on the transaction.
Bessemer, a US-based investment firm, manages more than $2 billion across the world. The firm recently invested $100 million with Sequoia and Citigroup Venture Capital in power generation company Ind-Barath Power Infra Ltd. Its other investments in India include Orient Green Power, Shriram City Union, Motilal Oswal, among others.
ITNL is planning to raise Rs 700 crore in a public offering and has appointed Enam, Nomura, HSBC InvestDirect and JM Financial as the lead managers. Trinity Capital, which holds a 2.5% stake in ITNL, is exiting in the IPO. Trinity had picked up the stake for Rs 41.6 crore in late 2006 for a per share price of Rs 100.
Bessemer has picked up the stake from IL&FS Employee Welfare Trust (IL&FS EWT), shows the draft red herring prospectus (DRHP) filed by ITNL with market regulator Securities and Exchange Board of India (SEBI). Bessemer has picked up the stake for Rs 242 per share from IL&FS EWT, which allotted these share at Rs 45.42 back in 2006.
Other PE investors in ITNL are Goldman Sachs Strategic Investments and Standard Chartered IL&FS Asia Infrastructure Growth Fund, which bought the stake at Rs 100 and Rs 133 per share, respectively. Both of them hold a 5% stake each in the firm. IL&FS holds a 78.75% stake in the firm while the rest 5.35% will be held by IL&FS EWT after the sale to Bessemer.
ITNL has a portfolio of around 16 road projects across the country, with equity stakes ranging from minority interest to complete 100% holding. The company's revenues and profit after tax (PAT) have tripled between FY08 and FY09. ITNL had revenues of Rs 1,332 crore and PAT of Rs 27.8 crore for FY09. It also acquired Spanish company
Elsamex SA in March 2008 to start international operations.