Sri City buys back early investor AMIF Holding

Mumbai: Sri City, the integrated business park with an SEZ and a free-trade warehousing zone, has bought out one of its initial investors AMIF Holdings' 16.7 per cent stake, and is planning to spend Rs 200-crore for building pre-fabricated factories to help secure better revenue.

The buyout was carried out by the company and not other promoter. The existing promoters include the founder and MD Ravindra Sanareddy, a few NRIs and a few PE funds, which the MD refused to name citing confidentiality.

"Last month we gave an exit option to AIMF Holdings, which has stayed with us since our beginning in 2008 and was planning to exit for some time.

Since an IPO is not conducive now, we decided to buy back their 16.7 per cent stake in the holding company of the park," Ravindra Sanareddy said.

On the IPO plans, he said they "do not see a share sale happening at least in the next one year" due to the bad market.

The park located near the Sriharikota space centre on the Andhra coast in Nellor district was founded by Sanareddy and has been operational since 2009.

The sprawling 10,000-acre park is home to around 190 firms from 27 nationalities, and operates a multiproduct SEZ, a domestic tariff zone, a free trade & warehousing zone besides an electronics cluster.