Private cash for IOT

Originally published:  24/01/2012

IOT Infrastructure & Energy Services, the 50/50 Indian Oil Corp/Oiltanking joint venture, has raised Rs 100 crore ($20m) from India Infrastructure Development Fund, the private equity arm of UTI AMC. This injection of funds is designed to help IOT complete a number of capital projects, notably the 1.4m m³ petroleum product terminal at IOC's refinery in Paradip and the 192,520 m³ common user terminal at Raipur. 

IOT had been planning a public offering but was deterred by market conditions, leading to it seek private equity funding. “In 2010, we decided to raise equity through a public offer for our projects in India, but eventually opted for private equity funding due to unfavourable market conditions for an IPO,” says Jayanta Bhuyan, managing director of IOT. “IIDF’s investment has placed our valuation higher than what was envisaged during the planned IPO.”

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