IL&FS-sponsored private equity fund Tara India Fund III is part-exiting from Ramky Infrastructure through the IPO of the Hyderabad-based company. Ramky aims to raise Rs 530 crore through the issue that would include offer for sale worth Rs 180 crore by the promoter A A Rami Reddy and Tara India Fund.
Tara India Fund currently holds 5.6% stake through its three-and-half-year-old investment of Rs 50 crore. It is now encashing Rs 30 crore in the IPO through a part sale. The quantum of share sale will depend on the pricing of the issue. A A Rami Reddy who currently owns 76.11% stake will net Rs 150 crore through his offer for sale.
Other investors in Ramky include IFC that purchased shares from one of the promoters three years ago and Sabre Capital(owning 8.4% pre issue) that invested Rs 75 crore in the company at the same time as IL&FS in late 2006. Both IL&FS and Sabre Capital’s average cost of purchase of shares is estimated at Rs 180 a piece.
Since Sabre Capital is not selling shares and IL&FS is looking to encash less than what it invested, it implies the pricing of the issue will be much higher than Rs 180.
For the six months ended September’09, Ramky had consolidated revenue of Rs 717 crore with net profit of Rs 26.4 crore. It is into two businesses: construction and infrastructure development & management. It has constructed and developed projects in sectors, such as water and waste water, transportation, irrigation, industrial parks (including SEZs), power transmission and distribution, residential, commercial and retail property developments and a transport terminal development.