New Delhi, April 22 -- JM Financial Private Equity has led a Rs 90-crore ($10.8 million) secondary transaction in Green Gene Enviro Protection and Infrastructure Ltd, betting on rising demand for hazardous waste management and alternative fuels as environmental regulations tighten in India.
The transaction, which also drew participation from several family offices including the SRF family office, provides an exit to some existing shareholders, according to a company statement released on Wednesday.
JM Financial PE, the alternative investment arm of the Mumbai-based financial services group founded by noted investment banker Nimesh Kampani, did not disclose the sellers' identity or other terms of the deal.
Founded in 2005, GGEPIL is part of the Luthra Group's waste management business and operates nine facilities across India. The company designs, builds and runs infrastructure for waste-to-resource conversion as well as integrated hazardous waste treatment, storage and disposal.
GGEPIL operates in the hazardous waste segment, a niche but complex area of waste management involving the collection, treatment and conversion of industrial waste streams into alternative fuels. These fuels are typically used in energy-intensive industries such as cement, replacing fossil fuels like coal and petroleum coke.
"Hazardous waste processing is technically demanding given the variability in composition and calorific value," said Vinit Rai, managing director at JM Financial Private Equity, in the statement. "As regulations tighten and demand for responsible waste management grows, we see significant long-term potential."
This is the second deal that the PE firm has struck within a week. Earlier this month, it led a Rs 150-crore round of investment in New Delhi-based N.G. Electro Products Pvt Ltd, a contract manufacturer in the beauty, personal care and nutraceutical segment.
The sector-agnostic PE firm is currently investing out of its third fund. This fund has also backed the parent of online pharmacy Pharmeasy, agricultural machinery player Balwaan, agri-tech firm BigHaat, bottled water brand Clear, ad-tech firm SilverEdge, spices brand Zoff, and men's apparel brand The Bear House.
JM Financial PE launched its maiden fund nearly two decades ago. The vehicle backed 13 companies including LIC Housing Finance and GMR Airports, both of which it has since exited. Its second fund, raised in 2017, invested in 10 companies such as Spandana Sphoorty Financial, Canpac Trends, Innovcare Lifesciences, Walko Food, BigHaat, Emiza Supply Chain Services, and India Home Loan.
Published by HT Digital Content Services with permission from VC Circle.