Caparo Energy today said it has secured the first tranche of Rs 350-crore fund from The India Infrastructure Fund managed by IDFC Project Equity Company.
Morgan Stanley was the sole advisor to Capro Energy on this transaction and the deal would not dilute the shareholders stake, as it was done through allotment of preference shares, Caparo Energy said in a statement issued here.
"The second tranche of this funding, which is expected to be Rs 150-crore is at an advanced stage of discussion and a firm commitment in respect of this second tranche is expected to be finalised in the next few weeks," it said. The company expects to repay the preference shares from internal cash-flows, the issue of senior debt instruments, bonds or other debt refinancing, within a time period of 3-5 years, it said.
The firm expects to develop around 700 MW of wind projects through the Rs 500-crore of funds along with its existing resources, it said. The company said it has agreed on the locations for the 750 MW of projects, with Suzlon Energy, which are to be delivered under the existing blanket purchase agreement, fully commissioned and connected to the grid in stages by March 2013, 400 MW of which are expected to be commissioned and connected to the grid by March 2012. The firm expects that a total of 500 MW will be operational by March 2012, with the help of the Rs 500-crore funding.
