Ascent Capital invests Rs 200 cr in Karaikal port

Chennai : Private equity firm Ascent Capital has invested Rs 200 crore in Karaikal Port Private Ltd (KPPL), a subsidiary of Chennai headquartered Marg Ltd. The funds will be used for the Marg Karaikal Port-Phase 2A expansion, which is expected to enhance its capacity from the planned 21 MMTPA to 28 MMTPA and involves an additional capex of Rs 600 crore.

KPPL had entered into definitive agreements with Ascent and as per the terms of the agreements, the latter would invest Rs 200 crore by way of secondary purchase of promoter equity shares amounting to Rs 150 crore and by way of primary infusion of Rs 50 crore by subscribing to compulsorily convertible preference shares. The deal values KPPL at Rs 1,330 crore on a pre-money basis.

Marg chairman and managing director GRK Reddy said the investment from Ascent Capital was coming at an opportune time and was a testimony to the fundamentals of the port led by a high-efficiency quotient and a strategic location that supports an ever increasing hinterland.