Mumbai: Infrastructure developing company GVK Power and Infrastructure Ltd (GVKPIL), on Thursday said that it has signed an agreement with private equity firm Actis Advisors Pvt. Ltd and an affiliate of the Government of Singapore Investment Corporation (GIC) for an investment of Rs349 crore each in GVK Energy Ltd, a wholly owned subsidiary of GVKPIL.
The overall private equity investment in GVK Energy has now gone upto Rs 1498 crore and the overall dilution would be at 24.97%. Actis and GIC’s affiliate will bring in Rs 218 crores each as the first tranche of investment into the company. Early November, 3i Infrastructure Fund has invested Rs1200 crore for a 21.1% minority stake in GVK Energy.
GVK’s power portfolio comprises an operational capacity of 909 MW with a further 4200 MW under various stages of development.
G V Krishna Reddy, chairman, GVKPIL, in a statement, said: “While this strategic transaction will enable GVK Energy to deploy further capital we believe that both Actis and GIC will prove to be ideal partners in the next phase of the company’s growth.”
Actis is an emerging markets private equity investor with $4.7 billion under management. GIC is a global investment management company established in 1981 to manage Singapore’s foreign reserves.
Michael Till , partner and co-head of Actis’s Infrastructure business, said, “By investing in such a well-established, highly-respected business as GVK Energy, Actis is helping secure Indian’s current and future energy needs”.
GVK is amongst India’s largest infrastructure developers with experience spanning areas including energy, airports, roads and urban infrastructure.
As on date, GVK has invested over Rs 10,786.02 crore into infrastructure projects and has on hand projects in the pipeline of over Rs. 25000 crore.