Sources said ICICI Ventures will be picking up between 10 and 15 per cent in the company. The company has an enterprise value of Rs 25,000 crore (Rs 250 billion).
The deal will be formally announced in a few days. ICICI Venture declined to comment on the issue.
Jaypee Infratech is a fully-owned subsidiary of the Jaypee Group and was set up to execute the 165-km Taj Expressway project, connecting the cities of Noida and Agra in Uttar Pradesh along the banks of the Yamuna river.
The company also has the right to develop land and real estate along the expressway. The project is expected to be completed in 24 to 30 months.
The deal includes a combination of up-front equity and a convertible debenture issue that will be converted in tranches. ICICI Ventures will be financing the deal through at least two of its equity funds, though it has not yet decided which ones.
ICICI Venture handles assets of over $2 billion and has an ambitious plan to handle assets worth $10 billion in 2010, the next three years. The private equity fund has already announced the $2 billion real estate fund, a $1 billion diversified fund and a smaller $400 million mezzanine fund amongst others.
Till now the country's largest private equity player has done deal sizes within the $100 million range. It recently bought equity in Karvy Consultants for $100 million, its largest deal so far.
The Taj Expressway project, which was awarded in 2003, was delayed due to a major political controversy during Mayawati's previous tenure as Uttar Pradesh chief minister when opposition leaders accused her of corruption.
With Mayawati's return, the project is back on track with an inquiry commission set for the project giving it the go ahead. The expressway is expected to be completed within 30 months.
