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January 13, 2011

Deal Alert: NYLIM-JB Fund invests Rs.150-Cr in EPC firm PNC Infratech

Edited extracts from the Press Release:

Agra-based EPC (engineering, procurement and construction) and infrastructure development company PNC Infratech Limited (PNC) has received Rs.150 crores as an equity investment from NYLIM Jacob Ballas India Fund III, LLC (“NYLIM-JB Fund”), a Mauritius based Private Equity investor. PNC specializes in construction of highways, bridges, flyovers and airport runways, having built more than 1,000 km of highways and executed 17 airport runway projects till date

Commenting on the deal Mr. Pradeep Kumar Jain, Chairman and Managing Director of PNC said “The infusion of funds will help the company strengthen its balance sheet further, enabling it to bid for larger projects. PNC will use the funds to meet its capital expenditure and working capital requirements as also to part finance the equity contribution for its BOT projects to be developed in separate SPVs.”

Mr. Sunil Chawla, Partner, Jacob Ballas Capital India Pvt Ltd (“JBC”), investment advisor to NYLIM-JB Fund, said “Given the company’s track record and execution capabilities, we are confident that PNC will be able to get its fair share of the large highway construction opportunity in the country. The diversification into other areas of infrastructure will also start showing results in the next couple of years. NYLIM-JB Fund is extremely happy to partner with PNC and looks forward to being a part of the company’s continued success.”

Mr. Chawla has joined the Board of Directors of PNC.

Daiwa Capital Markets India Pvt Ltd, Mumbai, acted as advisor to PNC on this transaction.

About PNC Infratech Limited

PNC is an Agra-based Engineering, Procurement and Construction (“EPC”) services and infrastructure development company, specializing in construction of highways, bridges, flyovers and airport runways. The company is one of the leaders in the construction of airport runways and enjoys “SS” Class certification with Military Engineering Service (MES).

The company was founded by Mr. Pradeep Kumar Jain, Chairman, in 1999. PNC has successfully executed more than 35 infrastructure projects, of which 32 were executed independently. The company has till date built more than 1,000 kilometers of highways and executed 17 airport runway projects. PNC has recently diversified into solid waste management and power transmission projects. The company has a team of over 1,600 dedicated employees, including about 290 engineers and other professionals and finished the financial year 2009-10 with a turnover of Rs. 750 crores. PNC is currently executing more than 20 projects. These include the sole EPC contract for 126 km long 4/6 laning of Ghaziabad-Aligarh section of NH-91 in Uttar Pradesh and re-surfacing and extension of runway and allied works at AFS, Jorhat (Assam).

Moving up the value chain, PNC is taking the Public Private Partnership (PPP) route to become an infrastructure developer from being a pure play EPC contractor. The company is executing 2 highway BOT projects in joint venture and has been recently awarded 2 more BOT projects to be developed by its 100%-owned SPVs. The new BOT projects are the 107 km Gwalior-Etawah highway section of NH-92 awarded by Madhya Pradesh Road Development Corporation Limited and 123 km Kanpur – Kabrai section of NH-86 awarded by NHAI. In the coming years the company intends to consolidate its position as a high quality EPC company in various infrastructure verticals while simultaneously creating a healthy portfolio of infrastructure assets.
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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, Financial Software and Systems Limited and SEW Infrastructure Limited. Affiliate funds of NYLIM-JB 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 150 years of collective operating and investing experience, with over 50 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 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.

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