Motilal Oswal fund invests Rs 19 crore in IMP Powers

PRIVATE EQUITY WATCH

Motilal Oswal Venture Capital Advisors (MOVCAPL) has invested Rs 19 crore in IMP Powers Ltd, a Mumbai-based power equipment manufacturer.

The Rs 102-crore IMP is one of the oldest player in the power equipment segment with a product portfolio of various types of transformers, industrial meters and testing equipments. Transformers constitute about 95 per cent of its FY2007 sales. The company has successfully turned around after a bad phase in 2000-2005.

The company is undertaking a Rs 28 crore expansion, which entails the expansion of its manufacturing unit at Silvassa from 3,600 mva to 6,000 mva.

The investment will part-finance the expansion. Brescon Corporate Advisors was the financial advisor to the deal. Further, promoters of the company and Brescon Corporate Advisors Ltd have subscribed to the warrants to finance the balance capital expenditure. Post conversion of the warrants, Motilal Oswal Venture will hold 13.75 per cent in the company.

Raamdeo Agrawal, chairman of MOVCAPL, said: "India is rapidly moving from a $1 trillion economy to a $2 trillion economy, and the power sector will play a pivotal role in this movement. Companies such as IMP, which have established a strong brand and goodwill over the last four decades, will hugely benefit from this growth. The company had been through a difficult phase in the past and it is this experience that will put the company in good stead to capitalise on the current growth momentum.''

According to Ajay Dhoot, managing director of IMP, "We are very excited about the growth prospects in the power sector. We have a strong order pipeline and, going forward, we see it building up faster than ever before."'

Aaditya Dhoot, joint managing director, adds, "The investment from Motilal Oswal will help us in ramping up our capacities to service the bulging order-book, particularly 132-220 KV transformers. We believe Motilal Oswal is a partner in the long run and would assist us with their strategic inputs."

MOFSL has launched the India Business Excellence Fund (IBEF), a $100 million private equity fund, which will be managed by the venture capital arm.