GE Energy Financial Services, an arm of American multinational conglomerate General Electric, has invested Rs 257 crore ($43.2 million) in Gati Infrastructure Ltd (GIL) through a share subscription agreement for an undisclosed stake.
VCCircle had first reported that GIL raised Rs 257 crore private equity funding from GE Energy Financial Services.
Gati Infrastructure, which commissioned its first 110 MW hydro electric power plant in Sikkim last month, has an enterprise value of Rs 1,400 crore with this transaction. The project, built at a cost of Rs 1188 crore, is the first one of this magnitude under private ownership.
IDFC acted as the lead financier with a loan at the project level and Capital Fortunes Pvt Ltd was the advisor and sole arrangers on this transaction.
Gati Infrastructure is owned by Mahendra Agarwal, founder and CEO, and his group firm Amrit Jal Ventures Ltd, an owner of special purpose vehicles (SPVs) with three hydro-electric power projects under construction in Sikkim.
Gati Infrastructure focuses on renewable energy and has a portfolio of solar, hydro and coal projects. The firm is backed by River Valley Hydro Venture Pte Ltd which invested $6.96 million in the company in 2007 for an undisclosed stake.
Commenting on the location of the project, Agarwal said, "Sikkim is a growing economy in the North East with average rainfall higher than in several other
Himalayan states. With glacial melt and the perennial rivers, Sikkim has a peak potential capacity of 8k MW of hydro-electric power."
GE Energy Financial Services provides financial and technological investment in energy infrastructure projects. According to its Website, it has committed more than $9 billion for wind, solar, biomass, hydro, geothermal and other renewable power projects.
(Edited by Joby Puthuparampil Johnson)