Tata Opportunities Fund invests Rs 335 cr in Tata Projects

Tata Opportunities Fund (TOF) has invested Rs 335 crore in Tata Projects for a significant minority stake in the company, marking its first investment in the infrastructure space.
"TOF, the flagship private equity fund advised by Tata Capital, has invested Rs 335 crore or USD 55 million in Tata Projects, an EPC services company of the Tata group," the company said in a statement.
This transaction, for a significant minority ownership, marks the fund's first transaction in the infrastructure services sector, it said.
TOF has purchased secondary stakes from four Tata companies - Tata Steel, Tata Motors, The Indian Hotels Company and Tata International - which had taken stakes in Tata Projects after the company was formed in 1979.

"The fund has been evaluating the Indian EPC space and is looking at a revival in the sector as it comes off a cyclical low. We believe EPC companies will be early beneficiaries of an increase in capital spending in the country," Padmanabh Sinha, Managing Partner of the fund's advisory team said here.
He further said the fund seeks to play a supportive role in assisting Tata Projects in expanding its EPC services franchise with existing and new customers across segments and geographies.

The fund has been invited to appoint a nominee to the Board of the company, the release stated.

"We are sharpening our focus to deliver best EPC services and enhancing our scale of operations to global levels. We are investing progressively into technology and engineering capabilities and partnering with some of the best global companies to keep Tata Projects at the forefront of the changing global EPC space," Tata Projects CEO and Managing Director Vinayak Deshpande said.
Tata Projects reported revenue of Rs 3,444 crore in 2014-15 and its order book stood at Rs 16,000 crore.
Tata Projects, with expertise in power generation, balance of plant (BOP) and power transmission segments, has recently diversified into urban infrastructure and heavy civil construction having secured several key contracts in railways and urban transportation, including dedicated freight corridors and metro rail projects.