Sources close to Krishnapatnam Port Company revealed that the company is in talks with private equity firms SBI Macquarie and Morgan Stanley Infrastructure Fund. Krishnapatnam Port Company, which currently owns the biggest private port on the eastern coast of India, intends to sell a 6% stake in the company. The company hopes to put up INR1,200 crore for its expansion plans.
Sources said that the company had assigned investment bank JM Financial, which is based in Mumbai, to lead the group in the transaction. While Krishnapatnam Port Company is yet to shortlist its potential buyers, some private equity frims had already signed a non-disclosure agreement as part of their due-diligence. Official Morgan Stanley Infrastructure Fund and SBI Macquaire representatives though declined to comment.
"The company is currently in the process of shortlisting the prospective buyers with the help of an investment banker. It is looking at raising at least Rs Rs 1,200 crore of equity funds by selling a minority stake of some 5-6%," said one of the sources.
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