3i India completes investment in Supreme Infrastructure

The private equity firm paid INR2 billion ($36 million) for its stake, contrary to previous reports that it would contribute $61 million. Ernst & Young acted as financial advisor to SIIL.

The investment was made from 3i's $1.2 billion India Infrastructure Fund. Launched in 2007, the vehicle focuses on power, ports, airports and road projects. This latest transaction takes its spending to $900 million, of which almost one quarter was in roads.

Back in January, when the deal was first announced and signed, Anil Ahuja, managing director and head of 3i Asia, said that the private equity firm was attracted by SIIL's strong track record and its access to high quality road BOT (build-operate-transfer) projects.

Founded in 1983, Mumbai-headquartered SIIL undertakes engineering works with government departments, public and private sector organizations. The company has a portfolio of eight road projects that it is executing on a BOT basis under the public-private partnership model.

India's infrastructure sector has been a key source of investment opportunities among private equity players. Following the strong performance of the India Infrastructure Fund, 3i is looking to raise at least the same amount for its successor.

Last October, Macquarie Group and State Bank of India (SBI) set a $1-1.5 billion target for their second India-focused infrastructure fund, while SREI Infrastructure Finance is reportedly seeking $1 billion to invest in areas such as roads, power and ports.

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• Topics
• Infrastructure
• South Asia
• Infrastructure
• 3i Asia Pacific
• India
• Infrastructure