AMP Capital Finance Mauritius Ltd, part of Australia's wealth management company AMP Ltd, is acquiring a 29 per cent equity stake for Rs 100 crore in city-based Gayatri Infra Ventures Ltd (GIVL), a wholly-owned subsidiary of construction firm Gayatri Projects Ltd (GPL). The two companies have entered into a definitive agreement to this effect.
As per the agreement, AMP Capital would be investing Rs 100 crore in the first tranche in equity shares of GIVL. These funds would be utilised to meet the requirements of GIVL's existing projects as well as future bids and concessions undertaken by it. AMP would also consider a further equity injection of Rs 100 crore depending upon the future projects undertaken by GIVL.
Anoop Seth, AMP Capital co-head (infrastructure), Asia, told mediapersons here on Monday that the Rs 100 crore would be invested through the company's new $750-million Asian Gaints Infrastructure Fund.
"Gayatri will be the first investment we are going to make from our new fund," he said, adding that at present AMP Capital's outstanding investments in India were to the tune of $60 million.
According to GPL director TV Sandeep Reddy, GIVL is currently executing five infrastructure projects -- three in Uttar Pradesh and two in Andhra Pradesh -- involving an investment of Rs 2,000 crore. These projects are expected to be completed by next year.
Stating that GIVL was expecting to bag an additional Rs 3,000 crore of infrastructure projects in the near future, Reddy said the company was planning to increase the equity capital to Rs 600 crore in the next couple of years so that it can bid for projects valued over Rs 5,000 crore. It would also consider coming out with an initial public offering in future.
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GPL's Vice-President (finance), KG Naidu, said GIVL had an equity base of Rs 125 crore, which was valued at Rs 240 crore prior to AMP's investment. Basing on this valuation, 29 per cent of the equity had been offered to AMP Capital for Rs 100 crore. The entire investment had been syndicated by Ernst & Young.