Times Private Treaties takes Strong Position in Infrastructure

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Times Private Treaties infrastructure portfolio includes Birla Power Solutions, Bhagyanagar India, Gujarat NRE Coke, Intense Technologies, Jaiprakash Infratech Ltd (JP Group), Jaiprakash Power Ventures Ltd (JP Group), Sujana Metal Products Ltd, Sujana Towers Ltd and Unitek Power Solutions India Ltd.

Times Private Treaties has created its space in the infrastructure, power and energy sector with investments in Birla Power Solutions, Bhagyanagar India, Gujarat NRE Coke, Intense Technologies, Jaiprakash Infratech Ltd (JP Group), Jaiprakash Power Ventures Ltd (JP Group), Sujana Metal Products Ltd, Sujana Towers Ltd and Unitek Power Solutions India Ltd.

During the first calendar quarter, PEs invested around $2 billion across 56 deals, says a study by investment tracker Venture Intelligence. A major destination for these investments has been infrastructure.

The largest deal during the quarter was the $425 million investment into power generation firm Asian Genco by General Atlantic, Morgan Stanley, Norwest, Goldman Sachs and Everstone.

Other big investments reported included Quadrangle Capital Partners’ $300 million into telecom tower infrastructure company TowerVision India.

Similarly, Bangalore-based GMR group is planning to raise an additional $100 million (over Rs 447 crore) from a group of private equity companies, led by Singapore-based Temasek Holdings, to fund its expansion plans.

GMR had raised $200 million from the same group of investors early this month and the group flagship company, GMR Infrastructure, raised $315 million (Rs 1,400 crore) through a qualified institutional placement (QIP) last week.

However, despite the large investments, raising equity and long-term debt for investment in infrastructure could pose a major challenge. According to reports, the government expects half of the estimated investment of $1 trillion in infrastructure during the 12th Five-Year Plan to come from private players.

The Centre is also betting big on infrastructure investments to reach the targeted 9% economic growth during the 11th Plan, slated to end in March 2012. With the infrastructure sector witnessing an investment of 7.18% of gross domestic product (GDP) in 2008-09.The government is targeting infrastructure investment to reach 8.37% of GDP by the end of the Plan period.