Standard Chartered PE invests Rs 130 cr in Karaikal Port

Standard Chartered Private Equity (Mauritius) II Limited has infused Rs 130 crore in Karaikal Port Private Limited (KPPL), a subsidiary of Chennai-based MARG Limited.

The infusion was by way of primary and secondary investments in MARG Karaikal Port for a minority stake. Rahul Raisurana, managing director, Standard Chartered Private Equity, will join the board of KPPL.

The fund will be used by MARG Karaikal Port to enhance the port’s capacity to 28 million metric tonne per annum (mmtpa) from 21 mmtpa. The company started the expansion last year with an outlay of around Rs 600 crore and expects it to be completed in the next 14 months.

MARG Karaikal Port, located on the southeast coast of India, is the only all-weather, deep-water, multi-commodity port between the Chennai and Tuticorin ports. It is located in the middle of this 680-km coastline, which makes it the new gateway to Tamil Nadu.

It may be noted that MARG Karaikal Port has already attracted private equity investments from India Infrastructure Fund, Ascent Capital Advisors and NYLIM Jacob Ballas India Fund III LLC in the past. With this new investment by Standard Chartered Private Equity, MARG Karaikal Port has four institutional investors, said GRK Reddy, chairman and managing director, MARG Limited.

A significant portion of these investments would go towards convertible preference shares, said MLN Acharyulu, executive director, Karaikal Port. “Till now conversion did not happen. So, we will not be able to comment on the equity holding,” he added.