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Ramky Enviro Engineers Ltd is engaged in parleys to divest up to 50 per cent stake in the company valued at about ₹7,000 crore (nearly $ 1.1 billion).
The Hyderabad-based leading environmental and waste management solutions provider, part of the Ramky Group, which is into infrastructure, pharma and real estate businesses, is at advanced stage of finalising a major deal where leading private equity fund KKR is learnt to be in the forefront pipping couple of others who were in fray, sources close to the development told BusinessLine .
The company had appointed Barclays Capital to rope in strategic investor for the company, after its proposed move to tap the market through an initial public offer (IPO) of equity shares during 2013-14, was dropped.
According to sources, both Standard Chartered and IL&FS PE, who had invested in the company, founded in 1994 by Alla Ayodhya Rami Reddy, along with part-stake of the promoters are likely to divest up to 50 per cent stake.
This will mean a stake deal of about ₹3,500 crore. Both these investors had minority stake in the company during 2009, which they will be offloading at a significant premium.
The company, which closed the last financial year with a turnover of over ₹1,500 crore, is on course to closing with a turnover of about ₹1,800 crore this financial year, M Goutham Reddy, Managing Director, Ramky Enviro, had announced few weeks ago.
The company had also outlined that it was looking at a capex of about ₹1,000 crore, to be raised by way of debt and internal accruals, to fuel its expansion plans and meet the funding requirements in both India and in other markets, including the US, West Asia and South-East Asia, where it is already implementing several projects.
The company specialised in waste management, industrial and biomedical waste and handles hazardous waste for leading corporate in the pharma and other sectors.
The company has some marquee projects to its credit, which includes a 24-MW waste to energy project in Delhi.
It is in the process of setting up of a similar project in Hyderabad with an outlay of ₹330 crore.
This projects is expected to have 20 MW waste to energy project.
Some major projects are under development in Saudi Arabia and Dubai.
Earlier this year, it had acquired stake in Nature Enviro Marine Services, a Texas based company specialising in marine services.
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