Private equity fund Standard Chartered IL&FS Asia Infrastructure Growth Fund has bought a minority stake of less than 5% in Hyderabad based waste management company Ramky Enviro Engineers Ltd (REEL) for Rs 200 crore, reports Mint.
REEL is part of the Rs 2,500 crore Ramky Group. The report quotes Ramky group chairman A. Ayodhya Rami Reddy as saying: “The StanChart IL&FS Fund has valued the company at some Rs 4,400 crore, and picked up fresh equity of 3.39% at Rs175 crore and 1.26% of promoters’ stake at Rs25 crore.” REEL currently has paid-up equity of Rs 4.17 crore.
REEL has set up the first integrated biomedical waste management facility, the first integrated hazardous waste management facility, and the first integrated m unicipal waste management facility based on a tipping fee model in India. Ramky has more than 30 waste integrated waste management facilities which are being used by several corporates.
REEL has reportedly posted revenues of around Rs 300 crore for the fiscal year ended March, 2009. The company is currently executing some Rs 4,000 crore worth of projects over the next 30 months, according to tReddy.
REEL plans to go public over the next three to five years, which would also provide an exit route to the private equity investors.
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