India-focused private equity firm Nine Rivers Capital has acquired “a significant minority stake” in Pranav Construction Systems, for INR 500 million ($10 million, €8 million).
Based in Mumbai, Pranav is a turnkey solution provider in formwork engineering. Formworks are temporary structures designed to hold and support wet concrete until it cures.
The capital injected will be used to set up a manufacturing facility, which will expand capacity by nearly 400 percent. It will also increase the company’s long-term working capital to fund future growth.
This is the firm’s maiden investment out of the Nine Rivers Capital fund, which closed on $125 million in September 2008. The fund invests in engineering and manufacturing businesses that are part of the infrastructure supply chain, Sandeep Daga, Nine Rivers Capital’s director and co-founder, said in an interview.
The fund’s investors are family offices or high net worth individuals, primarily from the US and East Asia, Daga added.
Set up in late 2007, Nine Rivers Capital typically invests between $5 million and $15 million for minority stakes in businesses with operations in India.