Press Releases

MARG KARAIKAL PORT ATTRACTS EQUITY INVESTMENT OF Rs 200 CRORES

~'Ascent Capital Advisors India Private Limited' ("Ascent") invests Rs 200 crores in Karaikal Port Private Limited~

~To fund development plans for further expansion of the port~

~ The deal values Karaikal Port at Rs. 1,330 crores on a pre-money basis~

Chennai, September 16, 2011: Karaikal Port Private Limited, a subsidiary of Chennai headquartered MARG Limited, one of the India's fastest growing infrastructure companies, has finalized its fund raising plans for its Phase 2A Expansion. Bangalore headquartered Ascent Capital, a leading private equity firm has decided to invest Rs 200 crores in MARG Karaikal Port. The funds will be used for the MARG Karaikal Port Phase 2A expansion plans which will enhance the port's capacity from the already planned expansion of 21 MMTPA to 28 MMTPA and involves an additional capex of Rs. 600 crores.

KPPL had entered into definitive agreements with Ascent for an investment of up to Rs. 200 crores to fund the development of Karaikal port. As per the terms of the definitive agreements, Ascent would invest Rs. 200 crores into KPPL by way of secondary purchase of promoter equity shares amounting to Rs. 150 crores and by way of primary infusion of capital amounting to Rs. 50 crore by subscribing to Compulsorily Convertible Preference Shares ("CCPS"). The deal values KPPL at Rs. 1,330 crores on a pre-money basis.

Commenting on the investment, GRK Reddy, Chairman and Managing Director, MARG Limited said, "MARG Karaikal Port is fast emerging as one of the finest ports in the South East Coast of India. The investment from Ascent Capital into MARG Karaikal Port comes in at an opportune time and more importantly is a testimony to the sturdy fundamentals of the port led by a high efficiency quotient and a strategic location that supports an ever increasing hinterland."

Ascent has completed the first tranche of its investment by purchasing Rs. 125 crore worth of equity shares of KPPL from MARG Limited and by investing an amount of Rs. 32 crore by subscribing to CCPS of KPPL. Karaikal Port had already attracted a private equity investment by India Infrastructure Fund into KPPL during March 2010 that with the present investment by Ascent, the port has two institutional investors adding value by their infrastructure exposure and expertise to augment and fuel the ambitious growth plans of Karaikal Port.

Commenting earlier to the press about the investment, K E C Raja Kumar, Founder & CEO, Ascent said, "MARG Karaikal Port is a promising asset. We see tremendous value in the port side of infrastructure."

About MARG Karaikal Port:

MARG Karaikal Port is a premier, deepwater, all weather port on the South East coast of India. The port has a sizable hinterland because of its strategic location. It is the only all weather, deep water, multi-commodity port between Chennai port and Tuticorin port and is strategically located at the middle of this 680 km coastline.

Awarded under BOT basis by the Government of Puducherry in 2006, MARG Karaikal Port when fully developed is envisaged to have a total of 9 berths capable of handling upto 47 MMTPA. The port is to be developed over 3 phases with the final phase getting operational by 2016. MARG Karaikal Port has shown its versatility by handling different types of cargo like coal, fertilizer, cement, raw sugar, project cargo, gypsum, containers, steel pipes, scarp, bagged sugar, construction material etc. Capacity to handle large vessels and diverse cargo, single window clearance, E2E logistics, state-of-the-art equipment, competitive tariffs and an ideal location are the hallmarks of MARG Karaikal Port.

About MARG:

MARG Limited (BSE: 530543), incorporated in 1994 and headquartered in Chennai, is an infrastructure, real estate development and services company. The Company is listed on BSE and MSE and its shares are traded on the NSE under the category of 'Permitted Security'. The holistic regional development undertaken by the group is unlocking economic prosperity and creating inclusive & sustainable growth models.

With nearly two decades of reassuring presence and the credit of pioneering the development of economic growth centers, MARG's portfolio spans across the entire infrastructure value chain - urban and industrial infrastructure, urban residential clusters, marine infrastructure & services, malls and EPC division. The group is on an expansion mode in various sectors such as airport projects in Bellary & Bijapur and multi-level car park projects, fishing harbor at Mahe etc,. Listed by Dun & Bradstreet among "India's Top 500 Companies 2010", today MARG Group has nationally prestigious projects worth more than Rs. 3000 crores under execution including the building of marine and cooling structures for the Bhavnagar Electricity Corporation, a seasoned human capital of more than 1000, global partners in the infra space and offices spread across India, Singapore and China. The MARG CSR brand – MARG Parivarthan complements these business verticals. More information on MARG is available on http://www.marggroup.com

About Ascent Capital:

Ascent Capital, advised by Ascent Advisors India Pvt. Ltd, an independent investment entity formed by the former UTI Ventures team, raised Ascent India Fund III with commitments of $350 million in February last year. The private equity firm focuses on growth capital investments and follows a sector-agnostic approach. The total assets under management by the mid-market private equity firm are about $600 million.

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