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Gujarat's Adani Group has group struck two deals with private equity funds to raise a total of $347 million for its power and the SEZ projects. UK private equity firm 3i Group-sponsored India Infrastructure Fund has invested $227 million for a minority stake in Adani Power. The company is developing a 2,640 MW coal-based thermal power plant in Gujarat. It's expected to become operational by 2009.
This is the first investment by 3i Infrastructure Fund, which announced its first close at $500 million early this month. The 3i India Infrastructure Fund is targeting $1-billion in commitments. The fund was set up by 3i in partnership with the India Infrastructure Finance Company Ltd (IIFCL) in April this year. The initial corpus of $500 million came in from 3i group and its arm 3i Infractructure Fund (bot are listed entities in London Stock Exchange). The 3i India Infrastructure Fund will invest in power, ports, airports and road projects. Business Standard has details on the project.
Meanwhile, The Economic Times reports that another Adani company - Mundra Port & SEZ (MPSEZ) - has raised $120 million from the Government of Singapore Investment Corporation (GIC), T Rowe Price Asia, ICICI Bank and IDFC. It's a pre-IPO deal as SEBI has cleared its IPO on Wednesday. A year ago, the company had raised $100 million using optionally convertible bonds from GIC and UK-based private equity firm 3i, the report says.
The company has priced its IPO price band at Rs 400-440, and it is expected to open by November first week. MPSEZ would sell 10 per cent of its equity in the market. At Rs 440 per share, MPSEZ's market cap will be around Rs 17,500 crore ($4.4 billion). The other equity holders — 3i, GIC, T Rowe, ICICI Bank and IDFC, who cumulatively invested $220 million — will hold around 4-5 per cent in MPSEZ, post-IPO. The remaining stake is being held by the promoter — Gautam Adani and group companies.