PE investors to part exit as India's Sadbhav Infra files for IPO
Sadbhav Infrastructure Project (SIP), an Indian road and highways project developer, is looking to raise at least INR6 billion ($97 million) through an IPO, providing a partial exit for PE backers Xander and Norwest Venture Partners.
According to a draft red herring prospectus (DRHP), SIP will issue an unspecified number of new shares to raise INR6 billion, while Xander and Norwest will each offer an additional 16.2 million shares, or half their stakes. Each firm holds 32.4 million shares, or 10.4% of the company, having jointly invested INR4 billion in 2011.
Established in 2007, SIP is majority-owned by public listed Sadbhav Engineering, which is promoted by Patel family. The company has 10 build-operate-transfer road projects in its portfolio, of which six are operational and nine are toll road projects.
SIP posteed revenue of INR1.16 billion for the year ended March 2014, down from INR1.17 billion the previous year. The company's net profit slipped from INR116.3 million to INR29.4 million over the same period, and it recorded a loss for the quarter ended June 2014.
SIP is the latest in a line of Indian companies to file for an IPO as their PE-backers look to take advantage of bouyant public markets. Others include Manpasand Beverages, Adlabs Entertainment, Power Mech Projects and CL Educate. Meanwhile, Sharda Cropchem, Snowman Logistics and Monte Carlo have already gone public.
The lead bookrunners for the SIP IPO are Kotak Mahindra Capital, ICICI Securities, Inga Capital, Yes Bank, Edelweiss and Citibank.
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