Standard Chartered Private Equity (SCPE) has invested INR 2,500m (US$45 million) for a minority stake in Inox India Limited (INOXCVA), a leading global manufacturer of cryogenic storage and transportation equipment.
Cryogenic storage equipment is a precision engineering product used for storage and distribution of liquefied gases used in industrial applications. The advent of shale gas as a fuel source has also resulted in strong demand for cryogenic storage equipment for liquefied natural gas (LNG) across the globe, especially in the US.
INOXCVA plans to use the new funds for its organic expansion plans and potential acquisitions.
Commenting on the investment, Siddharth Jain, sponsor from INOX India Limited, said, “INOXCVA is the supplier of choice for global industrial gas majors and oil services firms. Over the next few years our aim is to have a significant presence in all major global markets including Europe. Our partnership with Standard Chartered will help us in leveraging the bank’s extensive reach and access its global oil and gas relationships.”
In addition to Inox, over the last 18 months SCPE has invested in GMR Airports, Redington, Varun Beverages, Greenko, Privi Organics, Bush Foods, Innoventive Industries, Karaikal Port and Craftsman Automation in India.
Yes Bank acted as the transaction advisor for INOX India Limited. Khaitan and Co. and Wadia Ghandy and Co. were the Legal Advisors for INOXCVA and SCPE respectively.
