3i India Infrastructure Fund, an investment fund of private equity player 3i Group Plc, has invested Rs 500 crore as equity in KMC Infratech Ltd (KMCIL), a subsidiary of Hyderabad-based construction company KMC Constructions Ltd (KMCCL).

“With this investment and the current book size and projected revenues, we would have the capability to bid for projects with a size of Rs 3,000 crore and above,” sid Mr M. Goutham Reddy, Managing Director of KMCCL, a pure play infrastructure company focusing on road projects.

Mr Reddy told Business Line that “this investment is linked to performance and brings an established player as an investor. This is the second major investment for the company. We had earlier secured funding of Rs 175 crore in 2006-07 from Blue River Capital-led investor group comprising Sequoia Capital and IDFC.”

Financial position

The company currently has a BOT order book of 10 projects worth Rs 11,000 crore, which includes two tollways – a Rs 3,000 crore Gurgaon-Jaiipur Pink City stretch and Nellore-Chilkaluripeta part of Rs 2,500 crore. “We have begun to collect tollways and have taken up six-laning work. All the projects are to be completed within 30 to 36 months,” Mr Reddy said.

The company is set to close this year with revenues of about Rs 1,250 crore.

“We are currently holding a portfolio of 5,000 lane km across India. With additional fund infusion through one of the better known Infra Funds, we would be able to bid for more road projects. It is estimated that about 185 road projects will come up for bidding process under the NHAI,” he said.

Mr Anil Ahuja, Managing Director and Head of 3i Asia, said, “KMCIL is well positioned to take advantage of opportunities in the road sector. This allows us an opportunity to partner with an infrastructure company with a sound record in the road sector.”

The portfolio of $1.2 billion 3i India Infrastructure Fund covers investments in Adani Power Ltd, Soma Enterprises Ltd, Krishnapatnam Port Company Ltd, and GVK Energy Ltd.

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