3i invests in Supreme’s BOT Road Projects
3i India Infrastructure Fund has entered into an agreement for an investment of around US$61 million. The investment is for a minority stake in a portfolio of road BOT companies of Supreme Infrastructure India Limited (“SIIL”). SIIL is a construction and infrastructure company in India, focused on roads, bridges, power, water, railways and civil construction and infrastructure among other activities, with its primary focus firmly in the roads and highway sector along with other verticals of infrastructure. Since it was set up in 1983, SIlL has established a strong track record in this sector, having built over 400km of highways, and with an order book currently standing at Rs5,700 crores of which unexecuted order book is Rs3,750 crores .SIIL was founded by Bhawani Shankar Sharma and is currently managed by his sons Vikram Sharma (MD) and Vikas Sharma (Whole Time Director).
Anil Ahuja, Managing Director and Head of 3i Asia, commented on the transaction: “SIBHPL offers us the opportunity to expand our presence in the road sector in India through a portfolio of high quality road BOT projects. This investment allows us to partner with the Supreme Group, which has established a strong track record of constructing road assets in the country.”
Vikram Sharma, MD of SIIL said “We are extremely delighted to partner a global infrastructure investor of the pedigree of 3i. We are growing fast and find ourselves at a point of inflection, wherein inculcating global best practices and inducting high quality investors will help us go a long way in fulfilling our vision to be a leading infrastructure company from India. Based on construction expertise and executing capabilities, we are hopeful of winning new projects and take SIIL to a higher growth trajectory. We had received offers from a number of investors but chose to partner with 3i given their track record in India and understanding of the Indian infrastructure sector. We see 3i as a strong partner, who offers us access to a wide global network of contacts and experience which also brings strategic value addition to the whole transaction in the long-run. 3i cooperated closely with us to complete this transaction in a short time frame. We see further opportunities to work and grow with 3i on future investments.”
Cressida Hogg, Managing Partner of 3i Infrastructure, said: “This is an exciting investment in the growing Indian road sector one of the target sectors for 3i India Infrastructure.”
The US$1.2 billion 3i India Infrastructure Fund is building a balanced portfolio of investments spanning the asset lifecycle. Since inception, the Fund has invested in Adani Power Ltd, Soma Enterprises Ltd, Krishnapatnam Port Company Ltd, KMC Infratech Limited, GVK Power and Infrastructure Limited and Ind Barath Energies Utkal Limited.
Ernst & Young acted as the sole strategic and financial advisor to SIIL for this transaction.