3i India to pay Rs 1,200 cr for 21% in GVK Energy
GVK Power and Infrastructure (GVKPIL) has signed an agreement with 3i India Infrastructure Fund to lead an investment of Rs 1,200 crore for a 21.1% minority stake in GVK Energy, a wholly owned subsidiary of GVKPIL.
GVK’s power portfolio comprises an operational capacity of 909 mw with a further 4,200 mw under various stages of development. The 3i India Infrastructure Fund is $1.2 billion investment fund established by international private equity firm 3i Group Plc.
GV Krishna Reddy, chairman, GVKPIL said, “GVK has been a pioneer in the infrastructure sector in India, having developed India’s first independent power project. Today, we are poised to significantly grow our energy business to meet the growing demand in India. This transaction is an indicator of GVK’s ability to create value in its businesses for the benefit of our stakeholders.”
The shareholders in GVK Power & Infrastructure (GVKPIL) had approved in June through postal ballot a proposal to transfer assets of four power special purpose vehicles (SPVs) into a sub-holding company, GVK Energy. The investments worth Rs 1,170.23 crore in four wholly owned subsidiaries, GVK Industries, GVK Gauthami Power, GVK Power Goindwal Sahib and Alakananda Hydro Power Company, have been transferred to GVK Energy.
GVK has expertise 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 25,000 crore. The company has set up of India’s first independent power plant (IPP), the 217 mw Jegurupadu Combined Cycle Power Plant (CCPP) in Andhra Pradesh. GVK has subsequently expanded the Jegurupadu facility by adding a 220 mw plant and also set up the 464 mw Gautami Power Project, a Combined Cycle Power Plant, located at Peddapuram near Kakinada in Andhra Pradesh. Thus , GVK currently generates a total of 901 mw of power.
Source – Financial Express