Deals

This is the second time Singhi acted as our Exclusive Financial Advisor and assisted us to raise funds to meet our development capital needs. Since 2006, when the first round of Private Equity Placement took place, Singhi has been actively assisting John Energy in enhancing its value.
Mr. Vyas, Managing Director, John Energy Ltd

Completion Date
March 2010

Transaction Type
Project Finance

Transaction Value
$25 million

Lead Partner
Gopal Agrawal
Telephone + 91 22 6634 6666

Background
John Energy Ltd (JEL), a leading services provider to the oil and gas industry has received private equity investment of around Rs 100 crores (around USD 25 mn) from the Sage NPE India Fund I. The fund is advised in India by Sage Capital Funds Management Pvt. Ltd

John Energy Ltd (JEL), is a leading onshore service and equipments providing company in Oil & Gas sector. JEL's spectrum of services includes drilling of oil wells, work over & servicing of oil wells, rehabilitation of sick / abandoned oil wells, enhanced oil recovery services, compression of natural gas, erection & commission of natural gas compressors and mud and cementing services. The company was incorporated in 1987 and is based in Ahmedabad, India.

What Difference Did We Make?
During the association with John Energy Ltd (JEL), we (Singhi) closely worked with the management and the promoters of JEL. We simultaneously also used our wide network of contacts of institutional and private investors to develop a transaction, offering JEL the best value. Moving ahead, Singhi then invited valuation pitches only from a few shortlisted investors, who shared similar visions of growth. This tailored bidding process resulted in JEL being valued at more than three times the value offered in the First Round, in a short span of 4 years.

In the end, Singhi’s bespoke approach to JEL’s requirements and deep understanding of their business translated in a very high P/E multiple of over 30 times, even with the prevailing poor macroeconomic environment and despite a reported y-o-y fall in its Revenue and EBIDTA in FY 09 - FY10.