Mumbai: The structured investment group of Piramal Capital is in negotiations to acquire majority stake in two build-operate-transfer (BOT) road projects of Supreme Infrastructure India Ltd for a consideration of 700 crore, said two people familiar with the development.

“We are currently in negotiations and discussions with some funds and strategic investors for a stake sale in our BOT portfolio. Some of these discussions are at a very advanced stage but nothing officially has been committed, that can be shared or disclosed as of now," said Vikram Sharma, managing director at Supreme Infrastructure.

In a clarification to the stock exchanges, Piramal Enterprises Ltd, the holding company of Ajay Piramal Group said, “The company from time to time explores various investment opportunities as part of its structured investment business, in the normal course of its business. In view of your specific request, we write to inform that the investment opportunities forming part of the company’s structured investment business, includes investments in infra projects such as the project referred to in the captioned news item"

“Since nothing is of definite nature and nothing has been approved by the board or duly empowered committee it is difficult for us to comment on the same at this stage," the notification added.

Once concluded this would be the first equity investment of Piramal Capital’s structured investment group. It has concluded two debt investments prior to this. In April 2013, Piramal Enterprises invested 425 crore in Hyderabad-based Navayuga Road Projects Pvt. Ltd and 500 crore in Green Infra Ltd, a renewable energy firm promoted by IDFC Alternatives Ltd.

In an interaction with Mint in June last year, Jayesh Desai, co-head of structured investments group, had indicated that they are looking to invest in road, power and renewable energy assets, with a focus on operational road assets.

The investment arm focused towards infrastructure assets plans to invest 5,000 crore by 2016.

On July 30, 2014, Piramal Enterprises and Dutch pension fund APG Asset Management NV formed a joint venture to invest $1 billion in mezzanine securities of Indian infrastructure firms over next three years. Piramal Enterprises and APG have initially committed $375 million each for investments under the strategic alliance.

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