Morgan Stanley deal values Biotor ahead of Roshini

Alternate Energy space is sizzling hot amidst falling markets world over. In one of the recent deals, Morgan Stanley has reportedly picked up close to 30% stake in a Mumbai based cleantech firm. The company, Biotor Industries received INR2.4bn (US$53m) from the private equity arm of Morgan Stanley. The investment is in the form of equity and compulsorily convertible preference shares amounting to 30.4% of the post issue paid up capital of the firm.

Biotor makes castor oil based products and has fully owned subsidiaries in US and Germany for marketing and distribution. It also has a contract manufacturing subsidiary and plans to set up a manufacturing unit in Gujarat.

Total valuation of the firm after the deal is pegged at INR7.9bn (US$175m), ahead of Hyderabad based Roshini Biotech which was valued at INR6.8bn based on a second round investment from Goldman Sachs. While Roshini has long term plans of going public in 2011, AE biofuel’s Indian subsidiary Universal biofuels is in talks with private equity players to raise around INR2bn (US$44.3m) in a pre IPO deal. The company owns a 50 million gallon per year biodiesel facility on the east coast of India, and is planning a 75 million gallon per year biodiesel facility in Argentina.

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