Power utility CESC Ltd is looking at 10 billion rupees funding from private equity players for three of its power projects, Vice Chairman Sanjeev Goenka said on Wednesday.
"We are seeking private equity investment in Haldia Energy Limited," a wholly-owned unit of CESC that is developing three projects aggregating to 2,500 MW at a total cost of 125 billion rupees, he told reporters.
The firm is talking to both domestic and overseas PE investors on the premium and exit clause, he added, but declined to divulge the names of the entities.
The deals are expected to close by mid-February 2011, he said, adding he is unsure at this stage whether the firm will seek PE funding for its other projects.
Haldia Energy is developing power projects of 600 MW each at Haldia in West Bengal and Chandrapur in Maharashtra and 1,300 MW at Talcher in Orissa.
The financial closure for Haldia and Chandrapur projects has already been achieved and CESC expects the Orissa project to finance its debt once it recieves coal linkages, he added.
Earlier in the day, the firm reported a 23 percent increase in net profit to 1.55 billion rupees, on net sales of 10.9 billion rupees.
Shares in the firm rose more than 5 percent after the news, and were trading up 2.97 percent at 1.29 p.m. in a Mumbai market that was up 0.8 percent.