Tata Opportunities Fund (TOF) said on Monday it has invested Rs 335 crore in Tata projects. TOF’s investment marks the fund’s first transaction in the infrastructure services sector. “The fund seeks to play a supportive role in assisting Tata Projects in expanding its EPC services franchise with existing and new customers across segments and geographies,” it said in a statement. TOF can appoint a board nominee.
Padmanabh Sinha, teh managing partner at TOF’s advisory team in India, said the fund expects EPC companies to be early beneficiaries of an increase in capital spending in India. “The fund has been evaluating the Indian EPC space and is looking at a revival in the sector as it comes off a cyclical low.”
TOF is the private equity fund advised by Tata Capital and its portfolio companies include Ginger Hotels, Tata Sky, Shriram Properties and TVS Logistics. It has assets under management of $340 million. TOF has bought secondary stake from four Tata companies which had acquires stakes in Tata Projects. The four Tata companies include Tata Steel, Tata Motors, Indian Hotels and Tata International.
With an order book of Rs 16,000 crore, Tata Projects is one of India’s fastest growing EPC companies.