Ramky Enviro Engineers Limited (REEL), a division of Ramky Group, today announced that it has received an investment of Rs 200 crore (USD 2 billion) from IL and FS Investment Managers (IIML), one of India's largest infrastructure development and financial services companies.
The funds involved in providing the investment were Standard Chartered IL and FS Asia Infrastructure Growth Fund (Singapore), Tara India Holding Ltd (Mauritius), Tara India Fund III Domestic Trust (Mumbai) and Tara India Fund III Trust (Mumbai).
The funds take an active management approach to invest in portfolio comprising of infrastructure sector including transportation, energy, power, water, environment, telecom and urban infrastructure. The funds would have a primary focus on the rapidly growing Indian markets.
The private equity of Rs 200 crore was divided into Rs 175 crore of primary and 25 crore of secondary investment. IL and FS would issue Compulsory Convertible preference shares to investors which would be converted into equity based on the performance over the next three years.
The 25 crore would be raised by selling 1.26 per cent of the promoter’s share which would be transferred from their holding companies. The total stake picked up by the funds was 4.5 per cent which values the company at Rs 4,400 crore (USD 930 million).
In a statement, Ramky Group Chairman Alla Ayodhya Rami Reddy said ''Ramky is a pioneer in the field of Waste Management in India. We have always focused on sustainable development and opportunities to render our social responsibilities. There is a growing need and consciousness in the world communities for Biomedical Waste Management. The funds would be used for expansion as well as to fund various new projects on hand.''