Ind-Barath gets $100-m PE funding
Summary
The three private equity firms together picked up 18% stake in the company, valuing it at over Rs 2,100 crore. With this investment, private equity investors hold around 35% stake in the company, while the remaining is held by promoters and associates. We have got loans sanctioned by 9 banks for the Orissa project and we will be achieving financial closure on November 10, said Mr Raghu. The company which operates group captive and merchant power projects is also planning to put up 2000 mw capacity in Orissa and Tamil Nadu. Significantly, this deal signals revival of private equity funding in power sector, which has dried up in the recent months.So far in 2009, only six deals worth $157 million were closed, as against 17 deals worth $902 million last year, according to data complied by Venture Intelligence, a research firm focused on PE investments.The largest private equity deal in a power generation company was $395 million investment in Indiabulls Power by Farallon Capital and LN Mittal India Internet Ventures.Other large investments include IDFC Project Equitys $70 million investment in Essar Power and $85 million investment by Lehman in KSK Energy.