Infrastructure Advisory
Providing the entire gamut of investment banking solutions to companies in infrastructure development
Highlights
- A dedicated infrastructure advisory practice exclusively focused on the sectors of Power, Transportation, Urban Infrastructure and Urban Transportation
- The team comprises seasoned professionals who have extensive experience in infrastructure, a keen understanding of the sector and strong industry relationships
If India is to sustain its growth momentum into the next decade, developing world-class infrastructure facilities is of overriding importance. The significant demand for quality infrastructure projects across the country is driving the need for sophisticated and targeted financial advisory and fund mobilization services in this sector.
Kotak Investment Banking has formed a dedicated Infrastructure Group to provide the entire gamut of investment banking solutions to public and private sector corporates across sectors like Power (Generation & Associated Coal Mining, Transmission and Distribution), Transportation (Roads, Seaports, Airports & Railways), Urban Infrastructure (Car Parks and Water & Sewerage etc) and Urban Transportation (MRTS, LRTS, Hi-Speed Rail Links).
The infrastructure team has over 50 years of collective experience in the Infrastructure space and comprises professionals with a strong background in project level advisory, investment banking, resource mobilization, and development of infrastructure projects.
Key Recent Deals
- Unison Enviro Pvt. Ltd: In 2023, Kotak Investment Banking acted as the Exclusive Financial Advisor to Ashoka Buildcon and Morgan Stanley owned City Gas Distribution joint venture Unison Enviro, which was sold to Mahanagar Gas for $65mn. Unison Enviro has gas distribution networks in three geographical areas across two states in India.
- Bain Capital / JM Baxi Ports: In 2023, Kotak Investment Banking acted as a sell-side advisor to Bain Capital on its stake sale in JM Baxi Ports & Logistics to Hapag-Lloyd.
- Actis: In 2022, Actis acquired 400 MW operating solar assets portfolio from Atha Group for an enterprise value of $250mn. Portfolio comprised of 11 projects across six states in India. Kotak Investment Banking was the Exclusive Financial Advisor to Actis on the transaction.
- Leading Pension Fund backed InvIT: In 2022, Kotak Investment Banking executed fund raising for a roads and highways focused InvIT backed by a global Pension Fund.
- National Highways Infra Trust: In 2021, Kotak Investment Banking was the Lead Manager to NHAI’s maiden InvIT issuance of INR 80bn. The InvIT initially contained five toll assets of ~390 km length, spread across four states in India.
- G R Infraprojects Ltd: In 2021, Kotak Investment Banking was the Lead Manager and the International coordinator, which led the marketing efforts to the INR 9,620mn IPO of G R Infraprojects – the largest infrastructure EPC company IPO since 2011.
- GIC / Cintra: In 2021, IRB Infrastructure Developers entered into an agreement for preferential allotment of its shares to GIC and Cintra. Kotak Investment Banking was the Exclusive Buy-side Financial Advisor for this transaction.
- Fortum: In 2021, Fortum entered into definitive agreement with Actis to divest 500 MW Solar PV assets for a total consideration of $336mn. Kotak Investment Banking acted as the exclusive financial advisor to Fortum. Kotak was also the Exclusive Financial Advisor to Fortum for tie up of capital commitment for future assets.
- Delhivery: In 2021, Kotak Investment Banking was the Left Lead Banker to Delhivery, one of the largest IPO in the logistics industry in India. Successfully positioned Delhivery as having a massive $300bn+ TAM, phenomenal growth track record and the strongest balance sheet in a space where peers have de-grown / remained flat.
- Delhivery-Spoton: In 2021, Kotak Investment Banking was the Exclusive Financial Advisor to Delhivery for 100% acquisition of Spoton, an integrated express logistics player from Samara Capital and Xponentia Fund Partners.
- Skeiron Renewables: in 2019, Kotak Investment Banking advised Skeiron on its INR 33 bn sale of 385 MW wind power portfolio. Skeiron was a renewable energy platform set up by Suzlon Energy, Olympus Capital and Asia Climate Partners.
- Mahindra Logistics: In 2017, Kotak Investment Banking was the Left Lead Banker to Mahindra Logistics on its INR 8,288 mn IPO issuance. Mahindra Logistics is one of India’s largest Third Party Logistics (3PL) solutions provider, on the basis of revenue.
- ReNew Power: In 2017, Kotak Investment Banking advised ReNew on its $71mn debt syndication for Renew Power Ventures. Successfully marketed the debt offering to investors globally.
- KCT Group: in 2017, ReNew Power acquired KCT Group’s 103 MW of wind power assets. The portfolio included three operational wind power plants situated in Andhra Pradesh. Kotak Investment Banking acted as a sell-side advisor to KCT Group.
- TerraForm Power: In 2015, Kotak Investment Banking was the Sole Indian Banker to TerraForm Power on its $675mn IPO listing on NASDAQ. Successfully Marketed the IPO to domestic investors, helping them understand the key regulations and policies associated with investing in a NASDAQ listed entity
- Sadbhav Infrastructure Project Ltd: In 2015, Kotak Investment Banking was the Left Lead Book Running Lead Manager to the IPO of Sadbhav Infrastructure Project Limited, one of the leading road BOT companies in India. Sadbhav owns ten BOT road projects, of which six road projects are operational.
- GMR Airport Developers Ltd: In 2015, Kotak Investment Banking acted as the BRLM for the IPO of GMR Airport Developers Ltd.
- National Collateral Management Services:In 2015, Exclusive Financial Advisor to NCML for sale of majority stake to Fairfax for an aggregate consideration of ~Rs 8 billion. This is the largest transaction in the agri-logistics space in India.
- GMR:In 2013, GMR Highways Ltd. signed definitive agreements with Macquarie SBI Infrastructure Investments Pte Ltd and SBI Macquarie Infrastructure Trust to divest 74% stake in GMR Jadcherla Expressways Ltd (GJEL). GJEL is the concessionaire of the 58 km Farukhnagar - Jadcherla stretch in Andhra Pradesh on NH 7. Kotak Investment Banking was the exclusive financial advisor to GMR Highways Ltd on the transaction; US$ 38 million
- Essar Ports Limited: In 2012, Essar Ports Limited signed a Strategic Alliance Agreement (SAA) with Port of Antwerp International (PAI) for long-term strategic alliance and placement of Global Depository Securities (GDS) aggregating Euro 25 mn (~ Rs. 175 cr) with PAI. The SAA allows both parties to develop joint initiatives worldwide and collaborate in the areas of consultancy, port planning & development and training. Kotak Investment Banking was the exclusive financial advisor to Essar Ports Limited.
- BS Ispat Limited: In 2011, Oriental Iron Casting Limited, a subsidiary of OCL Iron & Steel Limited (OISL), acquired 100% stake in BS Ispat Limited. BS Ispat Limited is developing a 450 MW power plant, two captive coal blocks with capacity of ~70 million tonnes of coal and an associated sponge iron plant in the state of Maharashtra. OISL is a part of the Amtek Group, which is a leading global manufacturer of automotive components and assemblies with production facilities located across North America, Europe & Asia. Kotak Investment Banking was the exclusive advisor to the promoters of BS Ispat Ltd for the transaction.
- GVK Energy Debt Mobilization for acquisition of Hancock Mines: In 2011, GVK Coal Developers (Singapore) Pte Ltd (promoted by GVK Group) successfully raised debt of USD 1 bn for part financing the acquisition of Hancock Mines in Australia. The Kotak Mahindra group along with a consortium of public sector banks arranged USD 500 mn out of the total USD 1 bn debt for the transaction. The fund raise is one of the largest acquisition financings by Indian banks for an overseas mineral resource asset.
- Kalpan Hydro (Mauritius): In 2011, Neptune Infra Company Pte Limited acquired 100% stake in Kalpan Hydro Company (Mauritius). KHC is an aggregator of hydro power assets with operations in India. Kotak Investment Banking was the exclusive advisor to the promoters of Kalpan Hydro Company (Mauritius) for the transaction.
- Tuticorin Coal Terminal Private Limited (TCTPL): In 2011, TCTPL (promoted by ABG – LDA Bulk Handling Pvt. Ltd.) successfully raised debt of Rs. 3,280 mn for part financing the North Cargo Berth-II Project at Tuticorin Port, including both funded (RTL) and non-funded (BG) facilities. The Kotak Mahindra group along with a public sector bank arranged the entire debt for the transaction. The debt was syndicated at a competitive interest rate at a time of high interest rate environment and liquidity crunch.
- GMR Energy: In 2010, exclusive financial advisor for investment of Rs 9.3 bn by Claymore Investments (Mauritius) Pte. Ltd (a wholly owned subsidiary of Temasek Holdings) through compulsorily cumulative convertible preference shares. The deal is one of the largest private equity investments in India’s power sector and is Temasek’s first investment in the power generation sector in India.
- Monnet Power Company Limited (MPCL): In 2010, exclusive financial advisor and arranger for investment of Rs 275 cr by Blackstone Capital Partners (Mauritius) Limited through subscription to equity shares of MPCL. This is Blackstone’s first investment in the power generation sector in India.
- GMR Pochanpalli Expressways Limited: In 2010, GMR Pochanpalli Expressways Limited (a GMR Group Company) had successfully placed rated Non-Convertible Debentures (AAA SO) of Rs. 650 crores to refinance its existing loans. Kotak was the exclusive financial advisor for the transaction. This is the first long-term debt raise by way of a rated instrument by a private infrastructure project company in India.