3i’s investment of 6 million in SIBHPL

Private equity major 3i India is investing around $61 million (Rs.306 crores) for a minority stake in SIBHPL, a portfolio of BOT (build, operate and transfer) road projects of Supreme Infrastructure India Ltd (SIIL), a mid-size EPC contractor. The investment has been done through 2 billion India Infrastructure Fund.

Founded by Bhawanishankar H. Sharma in 1983, Supreme Infrastructure (formerly Supreme Asphalts) undertakes engineering works with most of the government departments, public and private sector organisations. The firm has developed over 400 km of highways and currently has an order book of Rs.5700 crores, of which the unexecuted order book stands at Rs.3750 crores.

Rajani Associates assisted Supreme Infrastructure India Limited on the deal. The team for this transaction was led by our Managing Partner, Prem Rajani and Associate Partner (Projects), Shisham Priyadarshini. Prem Rajani commented: “We have a long standing relationship with Supreme Infra and we have in the past on a continuous basis assisted them with some of their major projects.”

As the Transaction consisted of individual projects (each project besides the concession agreement has equity, loan and project documents), the main challenge was to streamline the expectations of all the parties with the limitations and requirements of each individual project. The objective was to ensure that the Transaction, besides being feasible to all the parties involved, would be acceptable to the concerned authorities.