In what will be the biggest PE investment in the power sector this year, Hyderabad-based Ind-Barath Power Infra Ltd has raised $100 million in funding from Sequoia Capital India, Bessemer Venture Partners and returning investor Citi Venture Capital International (CVCI).
The PE trioka would be getting an 18% stake in the power generation company, which is valued at over Rs 2,100 crore, reports the Economic Times. This will be a second round of funding for Ind-Barath, which raised Rs 300 crore in 2007 from CVCI and UTI Ventures.
Mails sent by VCCircle to Sequoia Capital spokesperson and CVCI did not elicit a response at the time of filing this story. An official from Bessemer Venture Partners said, they will make a formal announcement on the deal in a couple of days.
India’s power sector has been high on the radar of PE investors and has also led the fund-raising pack in the capital markets. The sector has seen couple of major deals this year like IDFC Project Equity’s $70 million investment in Essar Power and $78 million pre-IPO investment by Capital International and 3i Group in Adani Power.
Ancillary and engineering, procurement and construction (EPC) services firms in the sector have also attracted PE investments. Two power transmission & distribution firms, Deepak Cables and A2Z Maintainance and Engineering Services have also attracted funding in the last one year.
Ind-Barath Power currently has an operating capacity of 375 mw and is setting up plants with 3,000 mw of capacity. It has also tied up debt of Rs 2,600 crore for a 800 mw coal-based power plant in Orissa. Its other projects are coming up in Tamil Nadu and Karnataka.