New Silk Route (NSR) may invest Rs.300 Cr in engineering services firm ETA Engineering Pvt Ltd for 25% stake, valuing the company at Rs.1200 Cr.

The funds raised may be used to fund its ongoing and upcoming projects.

NSR will subscribe mostly to fresh shares apart from buying a small part of the promoter holding.

Veda Corporate Finance is the advisor to the transaction.

Transaction Reference: The Times of India

{TAG_10148_1295326415}

Chennai-based ETA Engineering is a JV between Dubai-based Emirates Trading Agency (ETA) ASCON Group of Companies, East India Hotels (Oberoi Group) and Conwood Agencies Pvt Ltd.

ETA Engineering provides electromechanical services to hotels, hospitals, technology parks and other commercial buildings.

It has two manufacturing units in Ambattur near Chennai and Pondicherry for manufacturing ductable split units, floor-mounted packaged units, self-contained packaged air-conditioners, air-handling units, fan coil units and chillers, among others.

Last year, ETA's Star Health and Allied Insurance Company had raised around $65 Mn from ICICI Venture and Sequoia Capital.

NSR is $1.4-billion private equity fund focused on Asian markets, especially India. Some of its portfolio companies include Nectar Lifesciences, INX Media, Aster Teleservices, KS Oils, Cafe Coffee Day, Ortel Communications, among others.