Citi VC to buy 17.7% in Coastal Projects
Private equit firm Citigroup Venture Capital International is picking up a 17.7% stake in Hyderabad-based infrastructure company Coastal Projects for Rs 178 crore, a person with direct knowledge of the transaction told ET.
By Rajat Guha & Paramita Chatterjee, ET Bureau |
NEW DELHI: Private equity (PE) firm Citigroup Venture Capital International (CVCI) is picking up a 17.7% stake in Hyderabad-based infrastructure company Coastal Projects for Rs 178 crore, a person with direct knowledge of the transaction told ET.
The investment would be routed through CVCI���s Mauritius-based growth funds Client Ebene and Employee Rosehill.
Both the funds are registered with Sebi and part of their stake acquisition would come in fresh shares, the person said, but refused to part with more details like the ratio between existing and new shares that the Citi funds would acquire.
CVCI���s funds would help Coastal Projects to expand across the country and ramp up its work in several areas in underground excavation, including hydro-electric projects, rail tunnels and other road works.
It has executed several contracts both in private and public sector. Coastal Projects, established in 1995, is currently on the look out for power and other infrastructure projects in Sri Lanka and other Asian countries.
The company operates from Hyderabad, Delhi, Bangalore and Chennai in India and is looking at tapping other cities in the next few years. It also has an office in Colombo.
Coastal Projects earlier divested its stake to foreign investors FIL Capital (7.50%), Sequoia Capital (6.25%) and Deutsche Bank (2.92%). With the induction of capital from Citigroup-led funds, these private equity firms would see a dip in their holdings. FIL Capital���s stake would shrink to 7.2%, while Sequoia Capital and Deutsche Bank would hold 6% and 2.8%, respectively.
CVCI is the investment arm of Citigroup and some of its earlier big-ticket investments include the ones in Jindal Drilling & Industries, Spentex Industries, SVIL Mines and Sharekhan.
Client Ebene and Employee Rosehill together hold 15% stake in Delhi-based civil engineering and industrial construction firm Subhash Projects and Marketing.
CVCI stepped up investments in India in 2005 after it launched the $1.7-billion Growth Partnership LP Fund I ��� the first independent PE fund it raised since its inception as a PE investor in 1996. Investments prior to 2005 were made mostly out of proprietary funds from Citi.
The investment would be routed through CVCI���s Mauritius-based growth funds Client Ebene and Employee Rosehill.
Both the funds are registered with Sebi and part of their stake acquisition would come in fresh shares, the person said, but refused to part with more details like the ratio between existing and new shares that the Citi funds would acquire.
CVCI���s funds would help Coastal Projects to expand across the country and ramp up its work in several areas in underground excavation, including hydro-electric projects, rail tunnels and other road works.
It has executed several contracts both in private and public sector. Coastal Projects, established in 1995, is currently on the look out for power and other infrastructure projects in Sri Lanka and other Asian countries.
The company operates from Hyderabad, Delhi, Bangalore and Chennai in India and is looking at tapping other cities in the next few years. It also has an office in Colombo.
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Coastal Projects earlier divested its stake to foreign investors FIL Capital (7.50%), Sequoia Capital (6.25%) and Deutsche Bank (2.92%). With the induction of capital from Citigroup-led funds, these private equity firms would see a dip in their holdings. FIL Capital���s stake would shrink to 7.2%, while Sequoia Capital and Deutsche Bank would hold 6% and 2.8%, respectively.
CVCI is the investment arm of Citigroup and some of its earlier big-ticket investments include the ones in Jindal Drilling & Industries, Spentex Industries, SVIL Mines and Sharekhan.
Client Ebene and Employee Rosehill together hold 15% stake in Delhi-based civil engineering and industrial construction firm Subhash Projects and Marketing.
CVCI stepped up investments in India in 2005 after it launched the $1.7-billion Growth Partnership LP Fund I ��� the first independent PE fund it raised since its inception as a PE investor in 1996. Investments prior to 2005 were made mostly out of proprietary funds from Citi.
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