3i India Infra Fund to invest US$101m in Soma Enterprise | INRnews
Established in 1997, Soma is one of the largest and fastest growing infrastructure developers in India. With an order book in excess of US$1.6 billion, it is a leading player in the infrastructure construction industry, specialising in multi-disciplinary engineering, procurement and construction (EPC) contracts across segments such as roads, irrigation, hydropower and urban infrastructure. The company is increasingly concentrating on developing build-operate-transfer (BOT) projects and already has a portfolio of BOT investments which it plans to expand significantly over the next few years.
Anil Ahuja, managing director and co-head of 3i Asia, said on the transaction: “With activity and investment in Indian infrastructure increasing dramatically, the engineering and construction space will continue to exhibit robust growth. Soma, as a high-quality business with a fine track record of executing complex infrastructure projects ahead of schedule and below budget, is ideally positioned to capitalise on this growth. We are impressed with what Mr. Maganti and his team have achieved so far and are committed to supporting Soma achieve its aggressive growth plans.”
Commenting on the partnership with 3i, Ankineedu Maganti said: “We see 3i as a strong partner which understands the local engineering and construction space while at the same time offering a wide global network of contacts and experience. 3i cooperated closely with us to complete this transaction in short time frame. Looking ahead, we see further opportunities to work together with 3i to invest in BOT projects.”
Michael Queen, managing partner and head of 3i’s infrastructure business, added: “This second investment by the Fund is a good example of the opportunity the Indian infrastructure market affords, and Soma is well placed to be a major BOT investor.”
3i India Infrastructure, which is targeting US$1bn in commitments, is creating a balanced portfolio of investments spanning the asset lifecycle. The Fund is managed by 3i’s infrastructure investment team, which combines long-standing international expertise and a strong local presence. It held its first close in September on US$500m in commitments from cornerstone investors 3i and 3i Infrastructure Limited, the FTSE 250 infrastructure investment company.
By INRnews Correspondent