Article by Sonny Lulla of Infrastructure India
plc
Sonny Lulla of Infrastructure India plc discusses the
company's experiences investing in infrastructure businesses in
India.
In March 2011, Guggenheim Global Infrastructure Company (GGIC)
sold its two Indian infrastructure investments to Infrastructure
India plc (IIP) in return for share consideration. The co-founders
of GGIC were appointed to IIP's board, while an affiliate was
appointed manager.
Rationale for the deal
The rationale for the transaction was relatively
straightforward: a lack of diversified, well-managed, UK-listed,
actively traded equities were preventing public market investors
from accessing India's burgeoning infrastructure industry. IIP
was originally envisioned as one such company, but unfavourable
market conditions meant it needed a catalyst to help get it there.
The addition of the GGIC-owned businesses, coupled with the
strength of IIP's investment pipeline in India, provided
