Reliance PE arm set to close three deals worth Rs 350 crore

Reliance Equity Advisors, the private equity (PE) arm of Anil Ambani-owned Reliance Capital, is all set to close three deals in infrastructure, consumer space and media & entertainment sectors, respectively.

Worth Rs 350-400 crore, the deals were in the advanced stages of negotiations, sources said. However, the companies involved could not be ascertained. When contacted, Ramesh Venkat, CEO & MD, Reliance Equity Advisors, refused to comment.

Reliance Equity Advisors manages Reliance Alternative Investments Fund – Private Equity Scheme 1. The fund has raised Rs 1,200 crore from the domestic market so far. In a portfolio of 12-15 companies, the ticket size of each investment is around Rs 100-125 crore.

According to sources, talks with the infrastructure firm in question are in quite an advanced stage and the deal, which could be around Rs 100 crore, is expected to be closed by this month. Other companies involved are engaged in original equipment manufacturing and media & entertainment, respectively.

In its first deal last year, Reliance Equity Advisors had purchased stake in Pathway World School for Rs 100 crore.

Like Reliance Equity Advisors, PE firms which are part of big corporate houses like the Tata and Aditya Birla groups, are active in fund-raising as well as investment.

Aditya Birla Capital Advisors, which raised its maiden fund at Rs 880 crore, has investments in the Bombay Stock Exchange, credit ratings agency CARE, Anupam Industries and GEI Industrial Systems. Tata Capital, which is in a fund-raising mode, recently hired Padmanabh Sinha of Temasek Holdings to head one of the funds. Its various funds include Tata Opportunities Fund, Healthcare Fund, Innovation Fund and Growth Fund.

Typically, deals in the infrastructure sector range from Rs 20 crore to Rs 5,000 crore. Smaller firms engaged in infra-related areas like machines or component manufacturing attract huge PE investments, given the potential of infrastructure growth in India.