India-based road construction company Sadbhav Infrastructure Projects has raised Rs 1.2bn ($31.6m) from anchor investors including conglomerate Tata in a $64m initial public offering, the Economic Times reported yesterday.
Insurance provider Tata AIG Life Insurance, Nomura India Investment Fund Mother Fund, an investment vehicle of brokerage firm Nomura; Morgan Stanley Mauritius, a subsidiary of investment firm Morgan Stanley; Amansa Holdings; HDFC Trustee; and SBI Mutual Fund also contributed to the IPO.
The seven anchor investors were part of a $64m offering, consisting of 20.4 million shares priced at $1.55 each, and Tata invested through its Tata Mutual Fund subsidiary. The IPO is set to close tomorrow.
Founded in 2007 as a subsidiary of civil engineering company Sadbhav Engineering, Sadbhav Infrastructure Projects specialises in the building of roads and highways, operating them through special purpose entities and joint ventures.
The offering is made up of both new shares and a sale of shares by Norwest Venture Partners, the venture capital firm managing funds on behalf of financial services provider Wells Fargo, and investment firm Xander.
Norwest and Xander, which each own a 10.4% stake in Sadbhav Infrastructure after jointly investing $86m in 2010, will each sell around 3.2 million shares.
Kotak Mahindra Capital, ICICI Securities, Inga Capital, Edelweiss and Macquarie are acting as book-running managers.