IDFC Project Equity, which manages the Indian Infrastructure Fund, has invested Rs 250 crore in alloy steel producer Adhunik Metaliks Ltd’s power subsidiary Adhunik Power and Natural Resources Ltd. The investment is towards part-financing of equity of its ongoing 540 MW merchant thermal power plant in Jamshedpur. The project cost is Rs 2,650 crore to be funded in the debt to equity ratio of 3:1.
Adhunik Metaliks is the Rs 1,200-crore flagship company of the Adhunik Group and has an alloy steel production capacity of 0.4 mmt from its plant in Orissa. Through Adhunik Power, the group has forayed into the power generation space.
IDFC Project Equity’s investment will meet part of the equity component, which comes to Rs 663 crore. The company has tied up the debt portion of Rs 1,987 crore through a consortium of banks led by SBI. The project is expected to generate power by January 2012.
The India Infrastructure Fund of IDFC Project Equity has a corpus of Rs 3,800 crore and it invests in equity for a long term in Indian infrastructure assets. In September, both IDFC and IDFC Project Equity inked a pact with GMR Infrastructure’s Kamalanga power project, with a project cost of Rs 4,540 crore. In March this year, IDFC Project Equity announced its investment of Rs 350 crore in Essar Power to part-fund the equity for its ongoing projects.
In 2007, it invested in two highway projects. It picked up 48.4% equity in an SMS Shivnath Infrastructure Ltd, an SPV of SMS Infrastructure Ltd, which owns, operates and maintains a 18.4-km stretch on National Highway 6. The fund also invested Rs 65 crore in Abhijeet Group’s Jass Toll Road Company Ltd.