Dubai-based $6-billion conglomerate Emirates Trading Agency (ETA) will be divesting up to 25% stake in its Indian engineering services firm ETA Engineering to New Silk Route (NSR). The Rajat Gupta-spearheaded private equity may invest Rs 300 crore in ETA Engineering, said sources privy to the development.
ETA Engineering, based in Chennai, provides electromechanical services to hotels, hospitals, technology parks and other commercial buildings. A top official at ETA group said the company was in talks with the PE funds to raise capital for unlocking the huge growth potential in India. The investor will subscribe mostly to fresh shares apart from buying a small part of the promoting holding in a secondary transaction, he added.
Veda Corporate Finance is adviser to the transaction, sources added. NSR is $1.4-billion private equity fund focused on Asian markets, especially India. The recovery in private equity investments has been led by the buoyancy in the core infrastructure and allied services, and this potential transaction reflects the continued investor interest in solution providers to the infra play.
The four-decade-old ETA is a joint venture between Tamil entrepreneurs Syed M Salahuddin, B S Abdur Rahman and prominent Arab business family Al-Ghurair. The group and its promoters are known for business and political connections in India as well as the Middle East
. ETA's cross-border operations are spread across real estate, shipping, insurance and construction.
Last year, ETA's Star Health and Allied Insurance Company, the first standalone health insurer in India, had raised around $65 million from private equity investors ICICI Venture and Sequoia Capital. Meanwhile, one source said NSR dealmaking with ETA was extended after the latter's name was dragged into the 2G spectrum controversy in Indian telecom industry.
Source: Times of India
ETA Engineering, based in Chennai, provides electromechanical services to hotels, hospitals, technology parks and other commercial buildings. A top official at ETA group said the company was in talks with the PE funds to raise capital for unlocking the huge growth potential in India. The investor will subscribe mostly to fresh shares apart from buying a small part of the promoting holding in a secondary transaction, he added.
Veda Corporate Finance is adviser to the transaction, sources added. NSR is $1.4-billion private equity fund focused on Asian markets, especially India. The recovery in private equity investments has been led by the buoyancy in the core infrastructure and allied services, and this potential transaction reflects the continued investor interest in solution providers to the infra play.
The four-decade-old ETA is a joint venture between Tamil entrepreneurs Syed M Salahuddin, B S Abdur Rahman and prominent Arab business family Al-Ghurair. The group and its promoters are known for business and political connections in India as well as the Middle East
. ETA's cross-border operations are spread across real estate, shipping, insurance and construction.Last year, ETA's Star Health and Allied Insurance Company, the first standalone health insurer in India, had raised around $65 million from private equity investors ICICI Venture and Sequoia Capital. Meanwhile, one source said NSR dealmaking with ETA was extended after the latter's name was dragged into the 2G spectrum controversy in Indian telecom industry.
Source: Times of India