StanChart PE invests Rs 130cr in Marg Karaikal Port

Karaikal Port, a subsidiary of Chennai-based infra firm Marg, today said Standard Chartered Private Equity has pumped in Rs 130 crore into the upcoming port project, which will give the PE firm a board position.

The investment has been made by Standard Chartered Private Equity (Mauritius) II by way of primary and secondary investments in Marg Karaikal Port for a minority stake.

The primary subscription funds will be used for the expansion of the port which will enhance its capacity from 21 mtpa to 28 mtpa, the company said. Post-deal, Standard Chartered Private Equity Managing Director Rahul Raisurana will join the port's board.

Motilal Oswal Investment Advisors acted as the transaction advisor. Karaikal in Puducherry is the only all-weather, deep- water, multi-commodity port between Chennai and Tuticorin ports.

Commenting on the development, Marg Chairman and Managing Director G R K Reddy said, "Karaikal Port has already attracted private equity investments by India Infrastructure Fund, Ascent Capital Advisors and NYLIM Jacob Ballas India Fund III LLC in the past. With this investment the port has four institutional investors."

"Given the planned and existing efforts towards infrastructure development of Karaikal, coupled with its healthy business and political environment, and location advantage, the port is poised to be one of the most strategic and efficient ports on the Southeast Coast that will help central Tamil Nadu and Puducherry," Reddy said.

"There is strong demand for high quality port infrastructure to service the expanding external trade and increasing needs for multiple commodities for the growing economy," Raisurana said. Marg won BOT award for the port from Puducherry in 2006.

Once fully developed, it will have nine berths capable of handling up to 45 mtpa cargo. The port is to be developed in three phases with the final phase getting operational by 2017.