The Tata Opportunities Fund (TOF), the flagship private equity fund advised by Tata Capital, on Monday announced an investment of Rs.335 crore in Tata Projects Limited (TPL), an engineering, procurement and construction (EPC) services company of the Tata group.
Headquartered in Hyderabad, with Rs. 3,444 crore in revenue in 2014-15, and an order book of over Rs.16,000 crore, TPL is one of India's fastest growing EPC companies.
"TOF has purchased secondary stakes from four Tata companies - Tata Steel, Tata Motors, The Indian Hotels Company and Tata International - which had taken stakes in Tata Projects after the company was formed in 1979," a company release said here.
TOF's investment for a significant minority ownership marks the Fund's first transaction in the infrastructure services sector, where it seeks to play a supportive role in assisting Tata Projects in expanding its EPC services franchise with existing and new customers across segments and geographies.
The fund has been invited to appoint a nominee to the company's board. The Fund's other portfolio commitments include Ginger Hotels, Tata Sky, a JV with 21st Century Fox, Varroc Engineering, Shriram Properties and TVS Logistics Services Ltd.
Tata Projects enjoys leadership positions in the power generation BOP and power transmission segments. It has recently diversified into urban infrastructure and heavy civil construction having secured several key contracts in railways and urban transportation, including Dedicated Freight Corridors and metro rail projects (Navi Mumbai and Delhi DMRC).
"Tata Project's strategic evolution in the last few years has made it a well diversified player with marquee credentials and provides it with the opportunity to become a world class franchise. We are glad to welcome TOF as a strategic partner in continuing this journey," said its chariman Prasad Menon.