Piramal group to invest in infrastructure assets
With the swearing in of the Modi government, real estate is seeing an upward trend. Following that trend a top official of Piramal Enterprises Ltd (Founded by billionaire Ajay Piramal) mentioned that they are looking for some investment opportunities in infrastructure and expect to finalize some deals in the next four months. They are focussing on road assets however are open to invest in power and renewable energy projects too.
Jayesh Desai, the co-head of the structured investments group at Piramal Capital, the financial services arm of the company mentioned that About Rs 5,000 crore will be invested by 2016. In the past too they had invested in such road projects. In April 2013, Piramal Enterprises invested Rs 425 crore in Hyderabad-based Navayuga Road Projects Pvt. Ltd and Rs.500 crore in Green Infra Ltd, a renewable energy firm promoted by IDFC Alternatives Ltd.
Piramal Enterprises is now looking for equity investments like some infrastructure assets—mainly operational road projects—and manage them after investing in these two debt investments. Desai mentioned that the company is not keen on under-construction assets with high implementation risks. They are well equipped and have a robust team to manage the operational road projects. He also mentioned that the company is ready to help when there is a shortage of cash flow, however is not going to invest in under-construction or greenfield projects where the company has already invested. They are looking at an average ticket size of a single investment between Rs 500-1,000 crore, or if required more. The group will also continue debt investments in infrastructure projects.
Source- Mint
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