GVK Power to divest 21% in GVK Energy to raise Rs1,200 crore

GVK Power to divest 21% in GVK Energy to raise Rs1,200 crore
PTI
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First Published: Mon, Nov 08 2010. 04 29 PM IST
Updated: Mon, Nov 08 2010. 04 29 PM IST
Mumbai: Infrastructure major, GVK Power and Infrastructure (GVKPIL), will be raising Rs1,200 crore by divesting a 21.1% stake in its wholly-owned subsidiary - GVK Energy.
Private equity fund 3i’s India Infrastructure Fund will be leading the Rs1,200 crore investment and an agreement to that effect was signed today, the company said in a release issued in Mumbai.
GVK’s power portfolio comprises operational capacity of 909 MW with a further 4,200 MW under various stages of development, it added.
“This transaction is an indicator of GVK’s ability to create value in its businesses for the benefit of stakeholders,” GVKPIL’s chairman, G V Krishna Reddy, said.
Explaining its rationale for the investment, 3i Asia’s head and managing director, Anil Ahuja, said, “GVK is well positioned to take advantage of the demand for power in India which is growing strongly.”
India Infrastructure Fund is a $1.2 billion investment fund, established by PE major, the 3i Group.
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First Published: Mon, Nov 08 2010. 04 29 PM IST