by NR INDRAN / INT
IOT Infrastructure & Energy Services Ltd(IOT), a leading multi-sector infrastructure & energy Company specializingin EPC, Terminalling, Upstream Services and Renewable Energy announced that‘India Infrastructure Development Fund’ (IIDF), a Private Equity fund managed by“UTI Capital” has invested Rs 100 crore in the Company through a sharesubscription arrangement.

After the deferment of its IPO process initiated in2010, due to acute volatility in the stock market, IOT explored otheralternative modes of financing its fund requirements and Private Equity was selected as a sound immediateoption. After many rounds of discussions with investors, which were facilitatedby MAPE Advisory Group, the deal was finalized with IIDF. Other reputed privateequity funds continue to show interest in the Company due to its established domain expertise,excellent growth prospects in India and abroad and a premium marketpositioning, which are considered to be the major reasons for attracting IIDF’sinvestment into the Company.

The fresh investment will help IOT meet its capitalrequirements for various projects including the over 1.4 million kilolitrecapacity petroleum product facility at Indian Oil Corporation’s (IOC) 15million MTPA Refinery in Paradip, Orissa and the proposed 1,92,520 kilolitrecapacity Common User Terminal in Raipur, Chhattisgarh.

“In 2010, wedecided to raise equity through a public offer for our projects in India, buteventually opted for private equity funding due to unfavorable marketconditions for an IPO. IIDF’s investment has placed our valuation higher thanwhat was envisaged during the

planned IPO. Our entrepreneurial management, outstanding track record ofgrowth and established market position has made IOT an attractive destinationfor PE investments,” said Mr Jayanta Bhuyan, ManagingDirector, IOT Infrastructure & Energy Services Limited.

Added Mr Bhuyan, “We find PE investments to be aviable route for funding our proposed expansion plans. Our CAGR of over 40% inrevenue and profit in the last five years, along with expertise in EPC,Terminalling and Upstream and focus on new businesses like Renewable Energy areproving to be a major deciding factor for PE investors, whose increasingconfidence in IOT will not only help us meet our fund requirement, but also seta new credence in this volatile market”.

Over 80 per cent of IOT’s revenue is generated fromits Engineering, Procurement and Construction (EPC) services and the remainingfrom its Terminalling and Upstream Services businesses. In November 2010, themanagement at IOT decided to carve out separate Power and Civil divisions toharness the vast potential of infrastructure projects in India and abroad.

IOT, a joint venture between India’sIndian Oil Corporation and Oiltanking GmbH, Germany is a trusted name inbuilding new infrastructure, operating it and coordinating complex logisticsolutions. Starting as a Terminalling Services Company, IOT, over the past 14years, has transformed into a diversified engineering services provider withinterests in Terminalling and Aviation Services, Design & Engineering, EPC,Upstream Services and Renewable Energy.

The newly formed Power division isexecuting the EPC contract for a “300 MW Power Plant at Chattisgarh and itsCivil division is executing a Water Supply project in Rajasthan.

IOT has also expanded its businesses inother geographies such as Kazakhstan, Indonesia and Saudi Arabia. In SaudiArabia the Company has entered into a JV with EIL and Jabal Group, each holding1/3rd of the share capital.

The company entered into theDirectional Drilling business in 2008 by acquiring Newsco’s business interestin Asia. Newsco is one of the leading independent directional drilling serviceproviders headquartered in Calgary, Canada and having businesses across theworld. In the last quarter of 2011, IOT acquired a controlling stake in theglobal business of Newsco which covers territories such as US, Canada, Russiaand Peru.

In the field of Seismic Services, IOTacquired 25% equity in a Kazakhstan business, which has an established trackrecord in 2D and 3D seismic services for onshore, transition zones andoffshore. This acquisition will enable IOT to take up profitable contracts inthese domains in India and abroad.

India Infrastructure Development Fund(IIDF) is the Private Equity arm of UTI AMC, the first and one of the largestAsset Management Companies in India with assets under management of around USD15 billion. UTI AMC is represented by strong ownership from LIC of India, StateBank of India, Punjab National Bank, Bank of Baroda and T Rowe Price Group,USA.

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