Power sector-focused NBFC PTC India Financial Services Ltd (PFS) has sold its entire stake in Ind-Barath Energy Utkal Ltd, a Hyderabad-based power generation company, for Rs 311.93 crore ($48.8 million), as per a stock market disclosure.
Ind-Barath Energy Utkal is engaged in the business of generation, transmission, distribution and supplying of electric power. The company was founded in 2008 and operates as a subsidiary of Ind-Barath Power Infra Ltd. It is currently setting up a 700 MW coal-based thermal power project.
PFS did not name the buyer but it had co-invested in Ind-Barath Energy Utkal along with PE firm 3i. The two investors had brought in Rs 305 crore of which PFS had brought in Rs 105 crore. Both the firms had a buy-back clause as part of their investment agreement where main holding company Ind-Barath Power Infra was to buy their stake.
Ind-Barath Power Infra is controlled by K Raghu Ramakrishnam Raju and had previously raised private funding from CVCI (now under The Rohatyn Group), Sequoia Capital, Ascent Capital and Bessemer Venture Partners.
“The exit made with a robust return on our investment, will strengthen the balance sheet, augment the company’s net-worth and the opportunity for increased lending to upcoming power projects,” said Ashok Haldia, MD and CEO, PFS.
PFS is promoted by PTC India Ltd (formerly Power Trading Corporation), the largest power trading firm in the country. The company focuses on financing projects in India across the energy value chain and renewable energy comprises 40 per cent of its portfolio.
Recently, International Finance Corporation (IFC), the private sector lending arm of World Bank, invested $35 million in PFS through non-convertible debentures (NCDs).