Zephyr Peacock invests $9.2M in Pennar Engineered Building Systems

Pennar Engineered Building Systems (PEBS), a subsidiary of Hyderabad-based Pennar Industries Ltd, has raised Rs 50 crore ($9.16 million) from PE-firm Zephyr Peacock, as per a stock market disclosure. The firm did not disclose the quantum of stake and said it is for a significant minority stake, but sources told VCCircle that the PE firm has picked around 20 per cent stake, valuing the company at Rs 250 crore.

As a part of the investment, Mukul Gulati and Vishal Dixit from Zephyr Peacock will join the PEBS board.

PEBS will use the funds to achieve its target of hitting Rs 1,000 crore in sales in the next three years, a CAGR (compound annual growth rate) of over 40 per cent through its aggressive growth plans in international emerging markets, solar infrastructure, high rise commercial buildings and cold form building systems.

Avendus was the sole financial advisor to PEBS Pennar on this transaction.

The firm expects to achieve revenues of Rs 325 crore for the financial year 2013, recording CAGR of 112 per cent over the last three years.

“PEBS is an excellent addition to our portfolio of fast growing businesses that leverage knowledge to positively impact important segments of the economy and society. We look forward to supporting PEBS in accessing our network of relationships in the global markets, developing innovative solutions for the infrastructure sector and strengthening the organisation to meet our plans for sustained, high growth," said Vishal Dixit, director, Zephyr Peacock.

PEBS delivers engineered steel building solutions for commercial, industrial, logistics, aviation, agriculture, sports stadia and other sectors. It provides design, manufacture, supply and installation of custom designed steel building systems and building components. PEBS is part of the Pennar Group of Companies which consists of Pennar Industries, Pennar Chemicals and Saven Technologies.

Zephyr Peacock India provides growth capital to fast growing, young businesses in India. It is part of Zephyr Management, L.P. a global private equity and marketable securities firm. Founded in 1994, the firm has sponsored 22 investment funds across the developed and developing world with about $1.3 billion in commitments.

This is the second investment of the firm in India this year. In February, Singapore-based private equity fund Credence Partners and Zephyr Peacock together invested $17 million in 20Cube Logistics.

(Edited by Prem Udayabhanu)

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