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Grapevine: Qatar fund may invest in Adani discom; GIP, Edelweiss eye Engie solar assets
Photo Credit: VCCircle

Qatar Investment Authority is in negotiations to buy up to 25% stake in Adani Group’s flagship power transmission and distribution asset — Adani Electricity Mumbai Ltd -- for up to Rs 4,000 crore ($564.3 million at current exchange rate), people in the know told The Economic Times.

The funds will be used to deleverage the balance sheet and provide growth capital to the business, the report said. “This will be more of a financial investment with a reputed sovereign wealth fund that also has operational expertise in infrastructure, especially the power sector,” said a long-time Adani Group observer on the condition of anonymity.

In August 2018, Anil Ambani sold his Mumbai power distribution business to Adani Transmission Ltd for Rs 12,700 crore,. Subsequently, the Mumbai business got housed under a stepdown subsidiary.

Meanwhile, Global Infrastructure Partners (GIP) and Edelweiss Infrastructure Yield Plus fund are competing to acquire the solar energy portfolio of French major Engie in India for around $400 million (Rs 2,835.6 crore at current exchange rate), two people aware of the development told The Economic Times.

Both have submitted firm offers and a final decision is due in the next couple of weeks. Actis, another global investor in the race, had backed out recently, the report said.

GIP India is believed to have submitted a proposal that includes cash along with stock in its own clean energy subsidiary Vector Green Energy. Edelweiss Infra is bidding through Sekura Energy Ltd, the energy-focused platform wholly owned by Edelweiss Infrastructure Yield Plus, the report added.

In another development, Essel Group chairman Subhash Chandra has secured a six-month extension till March 31 from lenders to repay debt which was to be paid back by September 30, a mutual fund executive familiar with the details told Mint.

The lenders, as part of the agreement, agreed not to sell pledged shares of the group’s flagship Zee Entertainment Enterprises Ltd (ZEEL) as the company would sell assets to repay all dues to lenders.

The company, which owed Rs 7,500 crore to the lenders, has since repaid Rs 3,356 crore, the report said.

Essel group sold 8.7% stake in ZEEL and repaid Rs 3,356 crore to mutual funds from the proceeds.

On 29 August, Essel group said it would sell 205 megawatts (MW) of its operational solar energy assets to Adani Green Energy Ltd at an enterprise value of Rs 1,300 crore.

Also, online makeup and beauty products retailer Purplle is in talks to raise up to Rs 300 crore ($42.3 million at current exchange rate) in its Series C round of funding led by Goldman Sachs Investment Partners, the growth and venture capital investment arm of Goldman Sachs, two people close to the deal told Mint.

Existing investors Blume Ventures, IvyCap Ventures and JSW Ventures are also expected to participate in the round, the report said.

Purplle competes directly and indirectly with brands including Nykaa, founded by veteran investment banker Falguni Nayar, Sugar Cosmetics and skincare startup Plum, backed by Unilever Ventures, the venture capital and private equity arm of consumer giant Unilever.

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