3i India Infrastructure Fund has paid $61 million to acquire an undisclosed minority stake in a portfolio of road projects owned by Indian developer Supreme Infrastructure India, the latter announced in a statement today.
Supreme, founded in 1983, has built over 400 kilometres of highways across India, although it also targets power, water, railway and civil construction projects, the company said in a statement.
According to Vikram Sharma, managing director of the Indian developer, Supreme “had received offers from a number of investors but chose to partner with 3i given their track record in India and understanding of the Indian infrastructure sector”.
For Anil Ahuja, managing director and head of 3i Asia, the acquisition “offers us the opportunity to expand our presence in the road sector in India through a portfolio of high quality BOT [build-operate-transfer] projects”.
3i raised its debut India infrastructure fund in 2008, focusing on investments of between $50 million and $200 million in power, ports, roads and airports, according to 3i’s website. It has invested in the likes of listed power firm Adani Power and roads business KMC Roads, to name just two of its investments.
With Fund I close to being fully invested, 3i is currently in the market for a second Indian infrastructure fund, which is targeting $1.5 billion. But whereas Fund I focused mainly on economic infrastructure, Fund II will look at other areas like water supplies, water treatment plants and infrastructure for the education and healthcare sectors, sources told Infrastructure Investor late last year.