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Bessemer in INR1bn pre-IPO deal

Bessemer Venture Partners has acquired a 2.41% stake in IL&FS Transportation Networks which develops and implements surface transport projects.

Bessemer Venture Partners has acquired a 2.41 percent stake in IL&FS Transportation Networks (ITNL), an Indian roadway developer, for INR1 billion ($21.5 million; €14.3 million).

The firm acquired 4,132,231 equity shares from IL&FS Employee Welfare Trust at INR242 per share, ITNL’s draft red herring prospectus filed with the Securities and Exchange Board of India revealed. Bessemer confirmed the deal.

ITNL, a subsidiary of Infrastructure Leasing and Financial Services (IL&FS), is preparing for an initial public offering. Other private equity investors in the company include Goldman Sachs Strategic Investments and Standard Chartered IL&FS Asia Infrastructure Growth Fund, both of which have a 5 percent stake in ITNL. IL&FS has a 78.75 percent stake in the ITNL.

Established in the year 2000, Mumbai-based ITNL is involved in the development and implementation of projects related to highways, flyovers, bridges and roads in India. The company intends to develop a pan-India surface transport business through new developments and acquisitions. The company is also active in the ports, railways and urban transport sectors.

ITNL intends to raise up to INR7 billion from its IPO and has appointed Enam Securities, Nomura Financial Advisory and Securities, HSBC InvestDirect Securities and JM Financial Consultants as lead managers for the issue.

In October, Bessemer invested $100 million alongside Sequoia Capital and Citi Venture Capital International in Ind-Barath Power, an infrastructure development company focused primarily on establishing small- and medium-sized gas, hydro, biomass and coal power projects in India.

A few of Bessemer’s past deals in India include investments in NetAmbit, a financial products distribution company; Tulip Telecom, a data communication services provider; and Venus Remedies, a pharmaceutical manufacturer. Since 2004, the firm, which has an office in Mumbai, has invested in more than 21 Indian companies.

The firm is currently investing in India from Bessemer Venture Partners VII, a $1.35 billion global fund.