past three to four weeks, there have been talks between promoters of such ICE companies and leading PE players like Blackstone, Carlyle, CVC International, Goldman Sachs, 3i, Barings, IL FS, Trikona Capital and Sabre Abraaj Capital, among others. At least two dozen deals worth around $1 billion are currently being sewed up, according to sources. Many other companies are stepping in, According to Shahzaad Dalal, vice-chairman and managing director, IL FS Investment Managers, the investments.
An estimated $320 billion investment is expected to flow into the sector, especially in road, rail and power. This is, indeed, giving a boost to companies in the infrastructure, construction and engineering space. Further, the Jawaharlal Nehru Urban Renewal Mission, launched in 2005, has promised investments of Rs 50,000 crore in next 2-3 years.
This has added to the sector s potential, said Mr Dalal. investment banker said PE players are now ready to take the construction risk, operate transfer) project. If the construction risk is managed well, one can reap rich dividends after the project completion, he A year ago, a coal company raising funds through private equity was considered a Herculean task.
Not any longer. For instance, Gupta Coal recent deal by Warburg Pincus, which invested $66 million in Aryan Coal Benefications, the largest provider of coal benefication (washing, processing and removal of impurities from coal) services in India.
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