GVK Energy to sell stake to 3i Infra

3i India Infrastructure Fund is the Indian arm of global private equity firm 3i Group Plc.

“The fund will be used for the expansion plans in our power projects. We cannot provide any more details at this moment,” a company spokesperson said.

GVK Energy is a wholly owned subsidiary of GVKPIL. Of the total Rs 1,200 crore,3i will invest Rs 800 crore and the rest by its limited partners,a company official said.

GVK’s power portfolio comprises an operational capacity of 909 MW with a further 4,200 MW under various stages of development.

GVKPIL owns 53.96 per cent in GVK Industries Ltd which operates the 216 MW Jegurupadu Phase I gas based power plant and the 220 MW Jegurupadu Phase II gas based project which is ready for commercial operations.

GVKPIL also owns 44.97 per cent (to be increased to 51 per cent in due course) in 464 MW gas-based Gautami power plant which is ready for commissioning.

The power plants under development include 330 MW Alaknanda Hydro Power,550 MW Goindwal Sahib Project,370 MW Goriganga Hydro Power.

Anil Ahuja,the Managing Director and Head of 3i Asia,said GVK is well positioned to take advantage of the demand for power in India which is growing strongly.

“This investment allows us to take a stake in a portfolio of power projects with an operator with one of the best track records in the country,” Ahuja said in a statement.

G V Krishna Reddy,the Chairman of GVKPIL,said this transaction is an indicator of GVK¿s ability to create value in its businesses for the benefit of the stakeholders.

The scrip of GVK PIL closed 2.24 per cent higher at Rs 45.65 on the Bombay Stock Exchange.