Tata Opportunity Fund invests Rs 335 crore in Tata Projects

Fund says it has been evaluating Indian EPC and is looking at a revival in the sector as it comes off a cyclical low

Tata Opportunities Fund, a private equity fund advised by Tata Capital today announced an investment of Rs 335 crore ($55 million) in Hyderabad-based engineering, procurement and construction (EPC) services company Tata Projects for a 'significant minority ownership'.

The Tata group company is involved in EPC business in power and other infrastructure projects, and it has recently diversified into urban infrastructure and heavy civil construction, having secured key contracts in railways and urban transportation, including Navi Mumbai and Delhi Dedicated Freight Corridors among others.

Commenting on the Fund's first exposure to the infrastructure sector, Padmanabh Sinha, managing partner of the Fund's advisory team in India, said they have been evaluating the Indian EPC space and are looking at a revival in the sector as it comes off a cyclical low.

 

The TOF had earlier invested in Ginger Hotels, Tata Sky, Varroc Engineering, Shriram Properties and TVS Logistics Services among others besides making secondary stake purchases in four Tata group companies.

Tata Projects CEO and managing director Vinayak Deshpande said the partnership with TOF would bolster their ability to raise additional financial resources, when required. Tata Projects has achieved Rs 3,444 crore revenue in 2014-15 and has an order book of over Rs 16,000 crore, according to company.