Jacob Ballas injects $38m in Marg Karaikal Port

The transaction - which sees Jacob Ballas acquire a minority stake - took place via a capital increase and the provision of replacement capital. Karaikal Port will use the new funding to help enhance its capacity from 21 to 28 million metric tons.

Jacob Ballas channeled the investment via its NYLIM Jacob Ballas India Fund III, which closed at $440 million in 2009.

"Karaikal Port, with its strategic location and excellent connectivity, is well positioned to cater to the agricultural and industrial belts of central Tamil Nadu," said Jacob Ballas Partner Sunil Chawla, who joins the company's board. "The need for incremental, efficient port infrastructure in the country is well known, given increasing volumes and the relatively high turnaround time at some of our ports."

Last August, Ascent Capital invested $45 million into Karaikal Port for a minority stake. And in 2010, IDFC Project Equity contributed INR1.5 billion.

Karaikal Port is controlled by infrastructure and real estate company Marg and located in Tamil Nadu on India's east coast. It is primarily engaged in handling coal imports, but is also responsible for exports of cement and sugar. Karaikal is the only all-weather, deep water, multi-commodity port between Chennai and Tuticorin.

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• Topics
• South Asia
• Infrastructure
• Infrastructure
• Infrastructure India
• Jacob Ballas Capital India
• Ascent Capital