Hyderabad-based infrastructure major GVK is in the last lap of finalising a private equity investment of $280 million (around Rs 1,280 crore) in its power venture. Two private equity firms, 3i and Actis, are investing $140 million, each, into the company, sources close to the development said.
Actis is known to be making this investment from its $750 million Emerging Markets Fund, which has a focus on infrastructure. The private equity firm recently partnered with Tata Realty and Infrastructure (TRIL) to invest $200 million (around Rs 950 crore) in a joint venture that will focus on road construction. Actis has committed an investment of $77.5 million in the joint venture, TRIL Roads.
UK-based 3i’s investment in GVK, could be from its $1.2 billion India Infrastructure Fund, which it had raised two years earlier. As on March this year, the fund already invested around $600 million and has plans to raise yet another infrastructure fund in a year.
While 3i and Actis have not responded to an e-mail query, GVK said it does not comment on such issues.
GVK has an operational power capacity of 901 megawatts. The company is expanding its power business and has lined up a slew of power projects and the equity would fund this expansion.
"We are investing heavily in power generation and instead of going about it ourselves, we thought of bringing in a partner to share risks as well as rewards," said a company source.
