Steel product manufacturer, Adhunik Metaliks today said IDFC Project Equity Company will invest Rs 250 crore in the company's subsidiary, Adhunik Power and Natural Resources.
The subsidiary has entered into an agreement with India Infrastructure Fund managed by IDFC Project Equity Company for an investment of Rs 250 crore as part finance its 540 MW coal based power project at Jamshedpur, Jharkhand, the steel firm said in a filing to the Bombay Stock Exchange.
"This agreement is a clear sign of confidence and faith in our ability by a reputed institution like IDFC and it is an important milestone in our journey towards becoming a major coal based independent power producer," Adhunik Metaliks MD Manoj Kumar Agarwal said.
Adhunik Power & Natural Resources is a part of Adhunik group of Industries having interest in power, steel, cement, transmission towers and mining.
IDFC investment would meet part of the equity requirement of Rs 663 crore. The project is likely to commence from January 2012 onwards, the filing added.
IDFC Project Equity Company Ltd is a subsidiary of IDFC. The company manages the India Infrastructure Fund (IIF), a domestic venture capital fund focused on infrastructure.
Shares of Adhunik Metaliks were trading at Rs 108.80 on the BSE, up 12.75 per cent from its previous close.