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UTI Capital buys 4% stake in Indian Oiltanking

UTI’s private equity arm, UTI Capital, has bought a 4% stake in Indian Oiltanking, a joint venture between state-run Indian Oil Corporation and Germany’s Oiltanking for Rs100 crore (US$18.8 million). Indian Oiltanking, which builds and operates terminals and storage facilities for petroleum products, will use the proceeds to fund its upcoming storage terminal in Paradip and for its overseas EPC projects, says Jayanta Bhuyan, managing director at Indian Oiltanking. The Mumbai-based unlisted joint venture company, founded in 1997, raised cash from private equity investors after it dropped plans for an initial public offering last year due to not so favorable market conditions. The company reported a turnover of Rs1,750 crore (US$330.6 million) during the last financial year. UTI Capital’s decision to buy into the company underscores the growing number of private equity investments in India, which jumped 31% to US$7.89 billion in the first three quarters of 2011, according to data from auditing and consultancy firm KPMG. (December 14, 2011)