IOT Infrastructure & Energy Services Ltd (IOT) announced on Monday that Rs 100 crore have been invested in the company by India Infrastructure Development Fund (IIDF), a private equity fund managed by UTI Capital.
IOT is a joint venture between Indian Oil Corporation (IOC) and Oiltanking GmbH of Germany.
The fresh investment will help IOT meet its capital requirements for various projects including the over 1.4 million kilolitre petroleum product facility at IOC Paradip refinery and the proposed 1.92 lakh kilolitre capacity common user terminal at Raipur in Chhattisgarh.
Mr Jayanta Bhuyan, Managing Director of IOT, in a press release said that “In 2010, we decided to raise equity through a public offer for our projects in India, but eventually opted for private equity funding due to unfavourable market conditions for an IPO. IIDF's investment has placed our valuation higher than what was envisaged during the planned IPO,” he said.
He said that the company finds PE investments to be a viable route for funding its proposed expansion plans. The company has a CAGR of over 40 per cent in revenue and profit in the last five years, which has also attracted the new investment.
Over 80 per cent of IOT's revenue is generated from its engineering, procurement and construction (EPC) services and the remaining from its petroleum products storage and upstream services businesses.