Global infrastructure asset manager Macquarie Infrastructure & Real Assets (MIRA Fund) has invested Rs 780 crore (approximately $122 million) to buy a stake in Ind-Barath Energy Utkal Ltd in a deal which saw both existing private investors of the power firm exit the company.
The deal has provided an exit to private equity firm 3i Group and PTC Financial Services. While 3i had invested Rs 200 crore, PTC Financial had put in Rs 105 crore around four years ago. Ind-Barath said on Wednesday that the deal has provided profitable exit to both the investors.
Last week, power sector-focused NBFC PTC India Financial Services Ltd (PFS) had said it has sold its entire stake in Ind-Barath Energy Utkal for Rs 311.93 crore ($48.8 million). Although the amount encashed by 3i Group in the exit could not be ascertained given its original investment value, it is unlikely to have pulled out similar returns as PTC.
A part of the investment from MIRA Fund has also gone into Ind-Barath Energy Utkal for the development of its 700 MW thermal project in Odisha, as per a press statement.
Founded in 2008, Ind-Barath Energy Utkal is developing the thermal project and has already secured all the necessary clearances and regulatory approvals with the first phase of 350 MW currently under trials.
The company is a subsidiary of Ind-Barath Power Infra Ltd. Ind-Barath Power Infra is controlled by K Raghu Ramakrishnam Raju and this parent firm had previously raised private funding from CVCI (now under The Rohatyn Group), Sequoia Capital, Ascent Capital and Bessemer Venture Partners.
“This transaction too has resulted in substantial value creation for us as well as our investing partners. Our understanding and execution capability in the power sector has consistently attracted global investors to partner with us in our vision to become a leading power company in India,” said K Raghu Ramakrishnam Raju, chairman and managing director of Ind-Barath Power Infra.
MIRA manages over $100 billion in assets with growing portfolios in real estate, agriculture and energy and is one of the world’s largest infrastructure asset managers.
MIRA-managed infrastructure funds have been active in India since 2009. The Macquarie SBI Infrastructure Fund and the SBI Macquarie Infrastructure Trust have invested in roads, airports & thermal power, among other sectors.
Investec India acted as the sole financial advisor to the transaction.