Tata Opportunities Fund invests Rs. 335 cr in Tata Projects.

Tata Opportunities Fund (TOF), the flagship private equity fund run by Tata Capital, recently announced an investment of Rs. 335 crore ($ 55 million) in Tata Projects Ltd. (TPL), an engineering, procurement and construction (EPC) services company of the Tata group.

Headquartered in Hyderabad, Tata Projects had earned Rs. 3,444 crore ($ 550 million) revenue in FY14-15 and had an order book of over Rs. 16,000 crore ($ 2.6 billion).

TOF has purchased secondary stake from four Tata companies namely Tata Steel, Tata Motors, The Indian Hotels Company and Tata International, which had bought stakes in Tata Projects after the company was formed in 1979. Its investment for a significant minority ownership marks the fund’s first transaction in the infrastructure services sector.

The fund seeks to play a supportive role in assisting Tata Projects in expanding its EPC services franchise with the existing and new customers across segments and geographies. The fund has been invited to appoint a nominee to the board of the company.

Tata Projects enjoys leadership position in power generation and power transmission segments. It 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 (Navi Mumbai and Delhi DMRC).

Tata Projects is a part of the Tata group’s infrastructure cluster, formed to maximise synergies among Tata entities in the sector.

HBL