Nandi Infrastructure Corridor Enterprise Ltd (NICE) is selling 10% stake in its project 'Bangalore-Mysore Infrastructure Corridor' (BMIC) to JP Morgan Partners.

NICE, a subsidiary of BF Utilities Ltd will sell 10% stake in Phase I of the 164 km tollway between Bangalore and Mysore.

BF Utilities holds 75% stake in NICE, while Anil Ambani of ADAG in his personal capacity holds 15% stake in NICE.

Enam Securities is the merchant banker to the deal.

Transaction Reference: DNA

The project has three phases. Phase I, which is still under construction, consists of a 9.1 km Link Road connecting the centre of Bangalore with a 41 km Peripheral Road around the city of Bangalore.

The project also has 5 new township developments along the expressway between Bangalore and Mysore, including one in Bidadi. DLF, India’s top realtor, was earlier supposed to develop a township project in Bidadi.

The concession period in this project for toll road is 40 years, including the construction period of 10 years.

In conjunction with 1995 Trade Mission to India sponsored by the then Governor of Massachusetts, William F. Weld, a MoU was signed by Consortium members, Indian officials, including then Karnataka Chief Minister, H.D.Deve Gowda, and U.S. officials, which set the stage for launching the Bangalore Mysore Infrastructure Corridor project.

The project has been in controversies since the day of planning. The project was suspended temporarily when H. D. Deve Gowda, and H. D. Kumaraswamy, of the Janata Dal, came to power in Karnataka. Deve Gowda alleges that this project is the country's biggest fraud and needs to be stopped. The problem got resolved with the High Court of Karnataka ruling in favour of NICE, and the BJP-led state government alloting 13,000 acres of land for the project.

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
12/03/12	Anil Ambani (Part Exit) - NICE - JP Morgan	Private Equity	JP Morgan India Property Fund	65.00
25/12/10	Nandi Infrastructure Corridor Enterprises - JP Morgan Partners	Private Equity	JP Morgan Partners	110.60

 

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  Profiles

Fund
Name	Corpus	Target Sector	Website	KeyContact
JP Morgan Partners		Consumer Goods Media Healthcare BFSI IT/ITES/Technology	http://www.jpmorganpartners.com	Bina TrivediHarshad M PatwardhanHarshad P PotdarNeha Manpuria

Company
Name	Promoters	Office	Competitor	Website
Nandi Infrastructure Corridor Enterprise Limited	Kalyani Group of Companies	No 1, Midford House,Midford Gardens, Off M.G.Road		www.nicelimited.com

  Advisor

Enam Securities Private Limited (I Bank)