Sage Capital is investing around Rs 100 crore, or $20 million, for a minority stake in Ahmedabad headquartered John Energy Ltd (JEL), a services provider to the oil and gas industry, a source directly familiar with the development told VCCircle. JEL is involved with drilling of new oil wells and rehabilitation of abandoned oil wells, apart from providing enhanced oil recovery services.
The investment is from Sage NPE India Fund 1, which is advised by Sage Capital Funds Management Pvt Ltd. Singhi Advisors acted as sole advisor to the transaction. In another recent deal, Sage Capital had invested $10 million into Concord Enviro Systems Pvt Ltd, an environmental engineering solutions firm.
Sage Capital is a $200 million fund which invests $5-20 million in each deal. The fund was founded by former Ambit Capital partner Manish Kanchan. The firm has made some proprietary investments before in areas like logistics, infrastructure, real estate and jewellery.
The deal marks JEL's second round of private equity funding. In 2006, it had attracted investments from RARE Enterprises (the investment arm of stock investor Rakesh Jhunjhunwala).
Incorporated in 1987, JEL has a track record of servicing more than 2,500 wells and drilling more than 2,33,000 metres. The company counts ONGC, Reliance, Jubilant, GSPC and Cairn Energy among its clients.
The oil & gas space continues to attract attention from PE players. Recently, Templeton Strategic Emerging Markets Fund III, LDC, a fund managed by US-based Franklin Templeton Asset Management, invested $19.95 million (around Rs 93.4 crore) in Shiv-Vani Oil & Gas Exploration Services Ltd, a New Delhi-based company.