Deep Industries, an Ahmedabad-based company is engaged in the business of oil and gas exploration and production. The Company’s oil and gas services include air and gas compression, work over and drilling rigs and gas dehydration services. PEPL, a subsidiary company of Deep Industries is engaged in the activities relating to the exploration, production, development, mining, marketing, transportation of CBM in India. Tridevi Capital is a UK based private equity investment advisory firm, authorized and regulated by the Financial Conduct Authority.
The investment is made through subscription of compulsorily convertible debentures and will represent 40% stake in PEPL on a fully-diluted basis upon conversion in equity shares, for cash consideration of $20 million at a total valuation of $50 million. The funds would primarily be used for capital and operating expenditure for the development and production of natural gas from the coal-bed methane block located in North Karanpura coal field (NK-CBM) in Jharkhand. PEPL holds 25% participating interest NK-CBM Block.
Mazars India acted as the Sole Lead Advisor for Deep Industries on this transaction.
This is among the first private equity investments in the coal-bed methane (CBM) sector in India and possibly the first project-based investment in oil and gas sector in the country.
Bharat Dhawan, Partner Mazars India said: “CBM is a key unconventional space in energy sector, and such investments will play a significant role in enabling development in future energy supply whilst achieving excellent levels of return for the investors.”
Ankur Wahal, Director Mazars India added: “This deal will serve as the gold standard for many more deals to come in this sector and demonstrate that even Gas Sector involving Coal Bed Methane Bed could serve to be an appealing investible asset class for the PE investor.”
Mazars is an international, integrated and independent organisation, specializing in assurance, accountancy, tax, legal and advisory services. As of 1 January 2016, Mazars operates throughout the 77 countries that make up its integrated partnership. We draw on the expertise of 17,000 professionals to assist major international groups, SMEs, private investors and public bodies at every stage of their development. In India, with 550 professional staff we offer our clients the advantage of a nation-wide presence.