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Report: ICICI executes India’s largest, non-PIPE deal

The Indian private equity firm has reportedly paid $800 million for a minority stake in Jaypee Infratech, an infrastructure division of Indian industrial conglomerate Jaypee Group.

India’s largest private equity firm has now reportedly done the country’s largest private equity deal, with an agreement to pay $800 million (€546 million) for a stake in Jaypee Infratech.

According to a report in Indian newspaper Business Standard, ICICI Venture will own a 10 percent to 15 percent stake in the firm, which is an infrastructure-related division of Jaypee Group, a conglomerate with energy, cement, real estate and hospitality divisions. The division has been awarded high profile contracts including construction of a 160-kilometer, six-lane expressway connecting New Delhi to Agra.

ICICI declined to comment for the Business Standard, which said the deal is due to be announced in coming days.

Though Singapore sovereign fund Temasek’s $2 billion investment in Bharti Airtel, a mobile phone services company, in July was larger, Indian blog VC Circle points out that it was a PIPE deal. As was Kohlberg Kravis Roberts’ $900 million investment last year in publicly listed software company Flextronic International.

Last month, ICICI invested with Hong Kong-based Baring Private Equity Asia to acquire a stake of around 32 percent in Karvy Stock Broking, a financial services provider in India for 5 billion Indian rupees ($127 million; €87 million).