OWS Looks to Raise Rs 300 cr for SEZ.

Oilfield Warehouse and Services (OWS), a Mumbai-based oil and gas sector focussed material management company, is in talks with around half a dozen private equity (PE) funds to raise Rs 300 crore to fund the cost of a port-based special economic zone (SEZ) between Kakinada and Vizag on the eastern coast.

Officials familiar with the development told Financial Chronicle that the company expects to sell up to 26 per cent stake in the firm and is in talks with PE funds such as Reliance Venture Asset Management, Axis Private Equity, JM Financial’s PE arm, Samara Capital, Peepul Capital LLC and Gaja Capital Advisors.

Vinay R Sharma, managing director, OWS said, "we are hopeful of positive PE investments and if everything goes well we would finalise the deal by the end of September or mid October.” The company is in process of setting up the sector specific port cum SEZ near its warehousing facility in Vizag, which will focus on the requirements of oil and gas exploration and production companies. “The SEZ is expected to take two years to be ready for commercial operations,” added Sharma

“However, if the negotiations with the PE funds fail, we will go for an IPO by April next year," said Sharma. He declined to confirm the PE funds the firm is in talk with cicting confidentiality clauses. The port which is an integral part of the proposed SEZ will have a jetty, to can accommodate offshore supply vehicles (OSVs) and small vessels.

Sharma said, “with warehousing facilities within a SEZ, we eliminate the need for repeat re-imports of equipment back to India, as SEZ is deemed to be foreign territory for the purpose of trade operations, duties and tariffs.” OWS, through its facility at Vizag, hopes that equipment such as tools and land rigs can be exported to the SEZ, once a contract for the asset is over. “These can be repaired or refurbished at the facility and made ready for the next job/contract. After the equipment is exported to an SEZ, the re-export bond is also cancelled, otherwise the companies hiring the equipment have to re-export the equipment back to the country of origin,” added Sharma.

The USP of the SEZ thus is that it will help equipment hirers save freight costs, mobilisation and de-mo­bil­isa­tion charges, and prevent co­stly and sensitive tools from getting damaged in transit, besides saving time involved in repair and return. OWS claims its clients include the likes of Aker Solutions, Baker Hughes, Dredging International, Schl­umberger, Scomi amongst others.

Source : mydigitalfc.com