| Log in

IL&FS-Backed Fund To Part Exit In Ramky IPO

31 March, 2010

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.


Leave Your Comment
IPO Trail: Spotlight On Orient Green Power, Ramky Infra, Va Tech Wabag

IPO Trail: Spotlight On Orient Green Power, Ramky Infra, Va Tech Wabag

Pallavi S 7 years ago
There is lots of market action expected from the quarters of three...
Ramky, Electrosteel & Orient Green Make Tepid Listing Debut

Ramky, Electrosteel & Orient Green Make Tepid Listing Debut

Pallavi S 7 years ago
Three private equity-backed firms listed with modest or no gains and are, in...
StanChart IL&FS Infrastructure Fund Buys 5% In Ramky Enviro Engineers

StanChart IL&FS Infrastructure Fund Buys 5% In Ramky Enviro Engineers

TEAM VCC 9 years ago
Private equity fund Standard Chartered IL&FS Asia Infrastructure Growth Fund...
No Comments

IL&FS-Backed Fund To Part Exit In Ramky IPO

Powered by WordPress.com VIP