Axis PE raising Rs 2,000 cr for infra fund

With markets showing signs of revival, Axis Private Equity is considering a second round of fundraising for its infrastructure fund. An investment arm of Axis Bank, the PE firm intends to raise Rs 2,000 crore.

DNA Money, quoted Alok Gupta, managing director and chief executive officer, Axis PE, saying their firm would enter the fundraising mode soon. “What is heartening is that there are several factors that will aid us. All indications are that the fundraising environment for private equity will turn for the better for emerging countries such as India,” Gupta told the daily newspaper.

The company has already negotiated a deal, which it will be announcing soon and is actively pursuing deals in the logistics, power, healthcare, education space. “We should be closing a deal in the clean technology (cleantech) space soon,” Gupta said.

Axis PE had in April 2008 made the first closure of their Axis Infrastructure Fund with Rs 600 crore. The firm deferred it fundraising plans owing to choppy market conditions. The money raised in the second round will also be invested in sectors such as etc. With a sweetspot of $15-30 million in small- and mid-cap firms with revenues of Rs 200-300 crore, Gupta feels the investment range may see some change once the new fund is raised.

So far, Axis PE has invested in Nessa Leisure, a Delhi based firm involved in hotel management training and running the Cambay brand of hotels; Corrotech, which provides corrosion protection for offshore oil & gas pipelines, etc; and Harish Chandra Infra, which implements railways projects for Rail Vikas Nigam and is into building bridges and highways. Another portfolio company is Vishwa Hydro, a Hyderabad based water treatment and sewage disposal player.