Pipavav Shipyard to raise $125m

Punj Lloyd and SKIL Infrastructure, co-promoters of Pipavav Shipyard (PSL), are raising $125 million private equity through pre-IPO deals.

After New York Life, 2i Capital and Trikona Capital infused $75 million — $25 million each — PSL has now roped in Citadel, the $17-billion US fund, and is in final talks with AIG for $25 million each, to take the total PE investments to $125 million.

The shipyard, currently being built at Pipavav, on the Gujarat coast, has attracted many financial investors. Sources said the five US-based investors will cumulatively hold around 40% in PSL, which claims to build a 600-metre-long dry dock, the third-largest in the world after Hyundai’s yard in South Korea and Dubai Drydocks. Dry dock in shipping parlance means a yard for repairs.

PSL is lining up Rs 800 crore (around $200 million) initial public offering (IPO) in the next 2-3 months. It will sell around 10% stake in the IPO. Post IPO, its paid-capital is expected to be around Rs 500 crore. IDBI, IL&FS and Exim will hold around 12%.

Read more in The Economic Times article.

New York Life Fund picks up minority stake in Avesthagen

New York Life Investment Management India Fund has picked up a minority stake in the Bangalore-based Avestha Gengraine Technologies (Avesthagen) for Rs 22.5 crore.Avesthagen will invest the money in expanding its business and to increase its global presence. Avesthagen is focussed on the convergence of food, pharmaceuticals and clinical genomics. The company provides solutions to agriculture and health disorders such as degenerative diseases, metabolic disorders and infections.

According to Srinivas Chidambaram, managing director, Jacob Ballas Capital India (JBC), the investment advisor to NYLIM India Fund, “With its unique business model, Avesthagen has the potential to develop a valuable IP portfolio which can be leveraged globally in the bio-pharma, bio-nutritional and bio-agriculture sectors.”

Avesthagen’s clients include global and Indian companies such as bioMerieux, Cipla, Godrej Industries, Nestle, Groupe Limagrain, and Danone. Avesthagen expects to commercially launch some of its products for the bio-pharma and bio- nutritional markets in 2008.