Saurashtra Infra & Power Private Limited runs the largest Container Freight Station in Mundra Region. Mundra Port itself is the second largest and fastest growing container port in the country. The CFS is the largest in the region commanding a market share in excess of 20% amongst 11 other CFS players
NUANCES IN THE TRANSACTION ADVISORY
The initial plan was to raise funds in the CFS business for inorganic opportunities and also enable the group’s foray into power business. However, we advised the company to focus on the CFS business and let the power business be taken up by other group entities – as it would be the appropriate strategy for value creation. We split the fund-raise into primary component (which will fuel the growth prospects of the CFS business) and secondary component (which the shareholders of the CFS business can use to fund the power business).
GETTING THE RIGHT PARTNER
After extensive deliberations with the management team on the culture and risk appetite of Investors along with factoring in the growth ambitions of the management and the future prospects of the business, we focused our efforts on pitching to the right set of investors. In due course of the same, we are glad that Fairfax India Holdings decided to partner with the company and its management in achieving its long term growth plans.
Being the sole financial advisor to this transaction, we advised the Company keeping in mind the end shareholding pattern between investor and management in a tax efficient manner.