Sector: Infrastructure

Buy Side Advisor to Reliance New Energy Ltd. for Acquisition of 40% stake in Sterling & Wilson Renewable Energy Ltd.

Deal Highlights

  • Reliance New Energy Limited (RNEL) a wholly-owned subsidiary of Reliance Industries Ltd (RIL) has acquired 40.0% stake in Sterling and Wilson Renewable Energy Limited (SWREL)
  • Issue of preferential equity shares to RNEL constituting 15.46% of the post-preferential stake
  • Acquisition of 1.84cr equity shares (representing 9.70% of the post-preferential capital) from Shapoorji Pallonji and Company Private Ltd (SPCPL), a promoter of SWREL (“Tranche 1”)
  • Acquisition of such number of additional equity shares from SPCPL and Khurshed Daruvala, both promoters of SWREL, to ensure 40% shareholding in SWREL after considering the preferential issue, Tranche 1 and shares tendered in the open offer made by RNEL to public shareholders of SWREL

Our Contribution

  • Clear Ideation – we identified the potential of an investment at a very early stage and helped stitch the transaction from inception
  • Structuring the deal to ensure a favorable outcome for the client
  • We managed the entire open offer process and ensured timely approval from SEBI, thereby ensuring timely completion

Book Running Lead Manager to the largest InvIT/REIT public issuance in India

Deal Highlights: PowerGrid InvIT IPO

  • 1st InvIT IPO by a Public Sector entity and 3rd InvIT IPO in India
  • Strong yield play with fully contracted long term cash flows and minimal counter party risk
  • Healthy subscription garnering interest from across investor pools
    • QIB* – ~4.8x; NII – ~4.6x; Overall* – ~4.7x; 42,000+ applications

Our Contribution: Distribution Powerhouse

  • 4th InvIT transaction for us
    • #1 procurer across these transactions
    • Maximum public InvIT transactions closed
  • Highest procurer in the anchor segment as well as overall QIB book^
  • Garnered early bids from key anchors
  • Procured 3 out of top 6 investors in a four-bank syndicate
  • Canvassed high quality orders across investor segments – Global & Domestic pension funds, Marquee FPIs, Insurance Companies, Mutual Funds & family offices
  • Provided guidance on various deal contours and timing

BRLM to the IPO of Macrotech Developers Limited

Exclusive Financial Advisor to the Airports Company South Africa (ACSA) for the sale of their stake in Mumbai International Airport Limited (MIAL) to Adani Airport Holdings Limited (AAHL)

Deal Highlights

  • We acted as sole and exclusive transaction advisor to ACSA on sale of its stake in MIAL to AAHL for a consideration of INR 6,750mn along with transfer of Airport operator rights to MIAL
  • Successful and profitable exit for ACSA generating significant liquidity despite facing multiple unexpected challenges post signing Share Purchase Agreement in March 2019
  • ACSA has made excellent returns on their investment, setting a precedent and paving the way for more foreign investors to be a part of India’s infrastructure growth story
  • AAHL has also acquired stake from other shareholders and will hold 74% stake in MIAL- it will catapult Adani Group to become the second largest airport operator in India*

Our Contribution

  • We uniquely positioned itself on the sell-side for ACSA, the leading South African airport operator, and seamlessly managed the entire transaction process from India
  • End-to-end project management including coordination with multiples bidders, legal advisors, senior counsels, solicitors, valuation advisors and commercial bankers to ensure timely completion
  • We played the crucial role of hand-holding the client through the myriad challenges faced during the transaction including multiple litigations delaying the process

This is our 5th transaction in the aviation sector including sale of stake in Bangalore airport; sale of stake in Spicejet, open offer for Air Deccan along with work done for leading global ground handling operators and MROs

* In terms of passenger traffic handled

1st Toll Road Closure During Pandemic

Deal Highlights:

  • The deal involves HCC Group selling 100% stake in Farakka Raiganj Highways Limited (“FRHL”) to Singapore based Cube Highways
  • This deal will be the first road asset closure amid the global pandemic and the on-going uncertainty around traffic on the toll road assets
  • The deal further strengthens our IB’s infrastructure franchise and once again demonstrates our ability to close marquee deals for quality clients, independent of the market environment
  • Combination of structures used for the first time in roads sector to enable future payouts

About FRHL:

  • FRHL had been awarded the project for four-laning of Farakka Raiganj section (approx. 100 km) of NH-34 in the state of West Bengal on Design, Build, Finance, Operate and Transfer (DBFOT) Toll basis by NHAI for a concession life of 30 years
  • FRHL is a wholly-owned subsidiary of HCC Concessions Limited, a HCC Group Company for developing and operating road projects

1Deal value indicates Enterprise Value which includes Equity Value of ₹ 6,030 mn

Exclusive financial advisor to the Shapoorji Pallonji Group for the sale of their renewable energy portfolio to KKR

Deal Highlights:

  • The deal involves SP Group selling 100% stake in 317 MW* of operational solar assets
  • The portfolio comprises of 169 MW* in Maharashtra and 148 MW* in Tamil Nadu
  • This will be KKR’s first investment in the renewable energy sector in India
  • The deal further strengthens our IB’s infra franchise and once again demonstrates our ability to close marquee deals for quality clients

Parin Mehta, Head Infrastructure, IB said, “We are very happy to be associated with the SP Group on this transaction. This deal is a big reinforcement to the fact that well built quality infrastructure assets will always find credible investors, independent of the market environment. With this deal, Edelweiss IB has announced a transaction each in transmission (IndiGrid – May 19), roads (CDPQ – Oct 19) and renewable (SP – April 20) sectors in the last 12 months”

About Shapoorji Pallonji Group:

With a legacy of 154 years, the SP Group operates in 70+ countries with a global turnover of over USD 5 billion. SP Infra is the infrastructure development arm with assets and businesses in the renewable and gas-based power, highways, port and terminals in India and overseas.

* DC