Private equity player NYLIM Jacob Ballas India Fund III, LLC (NYLIM-JB Fund) has invested Rs 150 crore in Agra-based infrastructure ancillary firm PNC Infratech Ltd (PNC), which specialises in construction of highways, bridges, flyovers and airport runways.  The engineering, procurement and construction (EPC) firm has built over 1,000 km highways and executed 17 airport runway projects till date.

The PE firm, which continues to place bets on infrastructure enabler firms, has previously infused Rs 152 crore into  SEW Infrastructure Ltd, an EPC company in Hyderabad. 

PNC Infratech  claims to be a leader in the construction of airport runways and enjoys “SS” Class certification with Military Engineering Service (MES).  The company was founded by Pradeep Kumar Jain, Chairman,a first generation entrepreneur, in 1999. PNC has till date executed over 35 infrastructure projects of which 32 were executed independently. 

Daiwa Capital Markets India Pvt Ltd, Mumbai, acted as advisor to PNC on this transaction.

The EPC firm recently diversified into solid waste management and power transmission projects. The company has a team of over 1,600 employees including 290 engineers. It finished  2009-10 with a turnover of Rs 750 crore.

It is currently executing more than 20 projects. These include the sole EPC contract for 126 km long 4/6 laning of Ghaziabad-Aligarh section of NH-91 in Uttar Pradesh and re-surfacing and extension of runway and allied works at AFS, Jorhat (Assam).

PNC is also taking the Public Private Partnership (PPP) route to become an infrastructure developer from being a pure play EPC contractor. The company is executing two highway BOT projects in a joint venture and has been recently awarded two more BOT projects to be developed by its wholly-owned SPVs. The new BOT projects are the 107-km Gwalior-Etawah highway section of NH-92 awarded by Madhya Pradesh Road Development Corporation Limited and 123-km Kanpur–Kabrai section of NH-86 awarded by NHAI.

Deal Action In Infrastructure Enablers

When it comes to the India infrastruture growth story, the ancillary space is where a lot of private equity is centred. Consider some of these recent deals:  Avigo Capital Partners invested $30 million for a significant stake in AMR Constructions (AMR), a Hyderabad based mining and infrastructure services company. Axis Private Equity has investments of Rs 126 crore in Delhi-based railway line manufacturer Harish Chandra India Ltd (HCIL) and Rs 60 crore in Vishwa Infrastructures and Services, which executes projects in the water supply and sanitation sector.

Clearwater Capital hiked its stake in Diamond Cables by purchasing 2.2% stake for around Rs 10 crore through the secondary market which takes its total holding to 13.77%. Originally an electrical products maker, the company has diversified into a manufacturer of power transmission equipment and turnkey services provider (EPC).

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