Gujarat-based Diamond Power Infrastructure Ltd, an integrated manufacturer of power transmission equipment and turnkey services provider, is raising funds from Kotak Private Equity. The PE firm may invest for up to a 10% stake. Diamond Power had earlier said that it plans to raise Rs 114 crore from Qualified Institutional Buyers though it did not specify the buyers.
Nitin Deshmukh, head of Kotak Private Equity, confirmed the development to VCCircle saying the PE firm is taking around a 10% stake. Diamond had said that it is allotting 5.59 million shares of Rs 203.8 each, though it remains unclear how many shares will be subscribed by Kotak PE.
The shares of Diamond Power closed at Rs 208.85 today, up by 0.58%.
Kotak Private Equity group has $1.4 billion under management. In an earlier investment, Kotak PE has also backed Dynaspede Integrated Systems Ltd, which offers turnkey solutions to the power and control engineering segment.
Diamond Power also plans to expand its board from 9 to 15 members. The company has also recently added Dr Vasantha Bharucha and Dr Kirit Vyas to its board as independent directors. Diamond Power has called for an extra-ordinary general meeting on August 19 to approve these proposals.
Private equity firms Clearwater Capital holds nearly a 15% stake in Diamond Power. Other investors include Alchemy India Long Term Fund Ltd and Reliance Infrastructure Ltd.
Diamond Power reported revenues of Rs 847 crore with a net profit of Rs 61.5 crore for FY10. The revenues for FY09 stood at Rs 698 crore with a net profit of Rs 56.4 crore.