3i, the London-listed private equity and infrastructure investor, is likely to make an investment of up to INR4 billion (€66.3 million; $87.2 million) in a build, operate and transfer (BOT) project portfolio owned by Indian infrastructure developer KMC Constructions, Reuters reports.
While 3i declined to comment on the report, an official from KMC Constructions said it is currently in talks with a number of funds and an official announcement will be made soon.
Reports suggest KMC has already received a term sheet from 3i’s $1.2-billion Indian infrastructure fund. Spark Capital, an investment bank based in Chennai, south India, is understood to be advising on a possible deal.
The Indian infrastructure developer has in the past raised funds from private equity firms. In 2007, KMC had raised $35 million from Blue River Capital and Sequoia Capital. Currently, Blue River Capital, through Ares Investments, holds a 12.22 percent stake in the company while Sequoia has a 9.09 percent stake and IDFC holds a 3.4 percent stake, according to Reuters.
In 2008, 3i raised an Indian infrastructure fund worth $1.2 billion. The fund has already made investments including Adani Power ($227 million), Soma Enterprises ($101 million) and Krishnapatnam Port Company ($161 million).