INDIA BUSINESS WORLD - DECEMBER 1^st - DECEMBER 15^th - 2007

CITI VENTURE CAPITAL (CVC) PICKS 7% STAKE IN DELHI'S SHIV-VANI OIL & GAS EXPLORATION SERVICES FOR RS 100 CR

Global private equity major Citi Venture Capital (CVC) has picked up nearly 7% stake in Delhi-based oil and gas company Shiv-Vani Oil and Gas Exploration Services for Rs 100 crore. Post CVC's investment, Merrill Lynch and GMO-US-based PE funds have picked minority stakes in the company through secondary market transaction.

With this transaction, CVC has made investment worth Rs 2,365 crore in Indian companies in 2007, next only to buyout majors Blackstone and Carlyle. This year, CVC has invested in mustard oil maker KS Oils, broking outfit Sharekhan, marble company SVIL Mines and bulk drug maker Unimark Remedies. "The investment is through a preferential allotment of shares. Given the fact that the sector has huge potential and it is the largest company in the onshore segment, the deal comes at a right time for us," CVC India MD Ajay Relan said.

This is the first PE funding for Shiv-Vani, which is the largest company in the onshore segment of oil and gas in India. The company is looking to achieve a turnover of Rs 800 crore by March 2008.

Shiv-Vani provides a complete suite of onshore activities, offshore operations and natural gas compression and allied services-ranging from shot hole drilling and seismic surveying through to directional drilling, engineering and logistics. The company is listed with BSE and NSE. The company has floated foreign currency convertible bonds listed on the Singapore Stock Exchange.

CVC is looking to make investments of nearly Rs 4,000 crore in India over the next 2-3 years. Out of its current $4.5 billion global fund, $1.6 billion has been allocated for investments in India. The fund has invested Rs 90 crore in edible oil company KS Oils and has equity stakes is textiles company Spentex, polyester producer JBF Industries and International Tractors.