UTI Infrastructure Fund is set to invest R200 crore in IOT Infrastructure & Energy Services, a 50:50 joint venture between Indian Oil Corporation and Germany-based Oiltanking Gmbh, according to sources.
UTI Infrastructure Fund is looking to pick up 8% stake in IOT Infrastructure & Energy Services, which is being valued at R2,500 crore. The JV, which is a into building operating terminals and storage facilities for petroleum products, is looking to raise R400 crore via private equity investment.
Other PE firms to be in talks for the remaining R200 crore investment are Olympus Capital, New Silk Route and Azim Premji?s PremjiInvest.
The entire deal is expected to be closed by June. IOT Infrastructure & Energy Services has a debt of approximately R2,000 crore.
The funds raised by IOT will largely be utilised to part-finance the 14,10,435-kilolitre petroleum product facility at IOC?s 15 million-metric-tonnes per annum Paradip refinery and build the 2,20,000-kilolitre terminal in Raipur, Chhattisgarh.
When contacted, Jatin Mavani, president ? finance & company secretary, IOT Infrastructure & Energy Services ? said, ?We are not looking at PE investment at this point, but that is an alternative investment in case the markets remain choppy. We are still looking for the right time to launch an IPO.?
The company was looking for a minimum dilution of 25% via IPO last year.
IOT Infrastructure & Energy Services had earlier planned to raise R800 crore via the IPO route but choppy markets discouraged the firm from go ahead. It had filed a DRHP in September last year with Enam Securities and SBI Capital as the book running lead managers at that point.
The funds raised via PE will be utilised for the expansion plans. It had been reported earlier that UTI Infrastructure Fund and Olympus Capital have been shortlisted for the stake buy.
