Wednesday, July 2, 2008

Private Equity: Goldman Sachs to invest in Roshini Biotech

Goldman Sachs is reportedly picking up a minority stake in Hyderabad based bio-diesel company Roshini Biotech. It is learnt that Goldman Sachs is picking up a 25% stake in the company for INR1.7bn. The price being paid pegs the valuation of the plantation company at INR6.8bn.

The company says that the investment will be used to expand its overseas operations. It is planning to expand its overseas operations and enter countries such as Uganda, Sri Lanka and Indonesia amongst others. Roshini Biotech has already won 25,000 acres of land from the Ugandan government to cultivate pongamia seeds.

Roshini Biotech is a bio-fuel company engaged in the bio-energy value chain. It has the world’s largest plantation of non-edible feedstock with more than 40 million trees and seedlings. Pongamia Pinnata, in which the company deals, is a non-edible and drought resistant tree with high yields of crude oil that recaptures rapidly -growing greenhouse gas emissions and generates income to poor farmers and rural communities.

This is the second round of PE funding for the company. Last year an investment and strategic advisory company focused on Chinese and Indian markets, Origo Sino-India Plc picked up 20% equity stake in Roshni Biotech. The company plans to go public in 2011.

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