Standard Chartered Private Equity (SCPE) has invested Rs 200 crore ($37) million to pick a minority stake in port management services provider Ocean Sparkle Ltd (OSL). The investment involved a mix of primary issue and secondary stake purchase from existing shareholder of OSL.
Part of the funding from SCPE will help finance OSL’s capital expenditure plans.
P Jairaj Kumar, chairman and managing director, OSL said, “This investment will help in our endeavour to accelerate our growth in various marine services across ports in India. We are also confident that this equity investment would aid our access to various geographies given the bank’s global presence.”
Rahul Raisurana, managing director, SCPE, said, "The country’s growing economy and growth in maritime traffic will provide a strong impetus for the growth of port infrastructure over the next decade. This will provide strong prospects for O&M activities at ports.”
As part of the SCPE investment, Rahul Raisurana, is joining OSL’s board.
MAPE Advisory Group acted as the transaction advisor for the fund raise.
Promoted by marine technocrats, OSL has positioned itself as an integrated and niche player providing port operation and maintenance services. At present, OSL services span port operation and management, ship-to-ship operations and dredging.
OSL currently serves most of the key ports across India’s coastline and has the largest tug fleet in the country. It also has pre-qualifications to operate in over five countries and presently has operations in Oman and Sri Lanka.
The company had earlier raised private equity investments from India Equity Partners, IFC and Eredene Capital, all of them holding minority stakes.
(Edited by Prem Udayabhanu)