Jacob Ballas commits to EPC sector again

The firm has invested INR1.5bn in PNC Infratech in its seventh investment from NYLIM Jacob Ballas India Fund III.

Jacob Ballas Capital India has invested INR 1.5 billion ($33.2 million; €25 million) for an undisclosed minority stake in engineering, procurement and construction (EPC) firm PNC Infratech.

The firm confirmed the investment but declined to elaborate on the company’s shareholding structure following the transaction. 

“We have got a good valuation from the private equity firm and the money raised will help us complete some of the existing projects, besides bidding for larger projects,” Chakresh Jain managing director at PNC Infratech told India's Economic Times.

PNC specialises in the construction of bridges, flyovers and airports. The company had previously made known its ambitions in expanding beyond the EPC space to managing full blown infrastructure projects by making inroads into the power and waste management sector. 

In November 2009, the Uttar Pradesh-headquartered company had submitted a draft red herring prospectus to the Securities and Exchange Board of India to raise INR 1.75 billion “to expand into new functional areas and geographic areas”. The company has since decided to cancel its bid to go public.

The deal marks Jacob Ballas’ seventh transaction from  NYLIM Jacob Ballas India Fund III, a $440 million India-focused growth capital fund that closed in January 2009. Including the investment in PNC, the firm has now deployed about $180 million from Fund III.

Its last deal was an INR1.52 billion (€25.6 million; $34.3 million) investment for an undisclosed minority stake in Hyderabad-based SEW Infrastructure, also an Indian EPC services company.

Other companies in Jacob Ballas’ portfolio include Financial Software & Systems, a provider of electronic payment and transaction processing solutions; Aster Teleservices, an infrastructure company; insulator manufacturer Saravana Global Energy; and pharmaceutical company Themis Laboratories (renamed Inventia Healthcare). The firm typically invests between $15 million and $60 million per deal.