SEW Infrastructure announces Rs.152 crores equity investment by NYLIM Jacob Ballas
Mumbai, April 5, 2010: SEW Infrastructure Limited (SEW) today announced that it has received Rs.152 crores as an equity investment from NYLIM Jacob Ballas India Fund III, LLC (“NYLIM-JB Fund”), a Mauritius based Private Equity investor. Daiwa Capital Markets acted as advisors to SEW on this transaction.
Commenting on the deal Mr. V. Rajasekhar, Managing Director of SEW said “We are pleased to partner with a reputed investor, JACOB BALLAS. CVCI has already been an Investor Partner since 2007. Considering the huge potential for growth in the Infrastructure Sector in India, we are extremely bullish about the opportunities in the EPC and BOT space”. Mr. Rajasekhar further added that the infusion of funds will help the company strengthen its balance sheet further enabling it to bid for larger projects. SEW will use the funds to meet its capital expenditure and working capital requirements as also to part finance the equity contribution for its 5 hydro power projects to be developed in separate SPVs.
Sunil Chawla, Partner, Jacob Ballas Capital India Pvt Ltd (“JBC”), investment advisor to NYLIM-JB Fund, said “In the construction/ EPC space, SEW stands out with core strengths in hydro power and irrigation and a growing presence in roads, power transmission, urban infrastructure and other infrastructure sub-segments. SEW is ideally positioned to capitalize on the India infrastructure growth story given the company’s superior execution skills and strong order book. We are excited to be a part of this growth story and look forward to being a part of SEW’s continuing success.”
Mr. Chawla has joined the Board of Directors of SEW.
About SEW Infrastructure Limited
SEW is a leading diversified Engineering, Procurement and Construction (“EPC”) services company, with a special focus on the irrigation and hydropower segments. The company was founded by Mr. V. Nageswara Rao, Chairman (Emeritus), in 1960. SEW is a 50 year old company and presently has 5000 employees. SEW has executed several dam and barrage projects, irrigation projects and hydropower projects to emerge as a leading EPC player in these sectors. SEW also has presence in the roads and urban infrastructure segments. The Company has recently diversified into power transmission Projects. The expected turnover for the financial year 2009-2010 is approximately Rs.1,825 crores.
SEW is now making a transition from being a pure play EPC contractor to an integrated infrastructure developer. The Company has bagged concessions for setting up 5 hydropower projects on Build, Operate & Transfer (BOT) basis, in the state of Arunachal Pradesh, aggregating 564 MW. In addition, the company has minority stakes in 2 hydropower projects in the state of Sikkim, with a total capacity of 186 MW. These projects are expected to be commissioned over the next 4 – 7 years.
SEW also holds 74.0% stake in a highway BOT project in Madhya Pradesh that is scheduled for commissioning by May 2011.
About NYLIM-JB Fund
NYLIM Jacob Ballas India Fund III, LLC is a Mauritius based fund with an investment objective of achieving long-term capital appreciation through equity or equity-related investments into companies based in or with significant operations in India. Previous investments by the Fund include Aster Teleservices Limited, Mahindra Holidays & Resorts India Limited, Saravana Global Energy Limited, Inventia Healthcare Limited and Financial Software and Systems Limited. Affiliate funds of NYLIM Jacob Ballas India Fund have previously invested in a diverse range of sectors including telecom, ports, power, engineering construction, shipbuilding, real estate, textiles, auto components, IT consulting and printing.
About Jacob Ballas Capital India Pvt Ltd
Jacob Ballas Capital India Pvt. Ltd (“JBC”), based in New Delhi, is the investment advisor to three India focused private equity funds, New York Life International India Fund (Mauritius), LLC, New York Life Investment Management India Fund II LLC and NYLIM Jacob Ballas India Fund III, LLC. JBC’s ten member investment team has over 140 years of collective operating and investing experience, with over 40 years focused on private equity investments in India.
JBC was founded by Mr Rajan Jetley, Chairman, who is a well known professional and entrepreneur. Mr Jetley, Chairman of JBC, has previously served as CEO of Air India and India Tourism Development Corporation, and as Director of International Airports Authority of India. JBC’s shareholders, apart from Mr Jetley, include NYLCAP Holdings (Mauritius) which is wholly owned by New York Life Investment Management Holdings LLC, a wholly owned subsidiary of New York Life Insurance Company, Excelfin Pte Ltd, promoted by Mr B S Ong and Mr David Ban, reputed Asian entrepreneurs with extensive interests in property, retail and lifestyle businesses and the JBC senior management team which includes Mr. Srinivas Chidambaram, Mr. Sunil Chawla Mr. Bharat Bakhshi and Mr. Anurag Kumar. For more information please visit www.jbindia.co.in.