The Small is Beautiful Fund (SIB), backed by various domestic public sector banks and financial institutions and having KSK Energy Ventures as its investment advisor, is transferring a part of its existing 33.44% stake in Secunderabad-based Shalivahana Green Energy (SGEL) to Singapore-based Pan Asia Infrastructure Asset Management Company Pte (Pan Asia).
The quantum of the deal value is not known but it is estimated that this transaction involves Rs 13.14 crore. An email query sent to KSK Energy Ventures (the investment advisor to SIB) did not elicit any response.
SGEL is part of Hyderabad-based Shalivahana Group which operates in areas of construction, power, education, eco-tourism and real, estate. Shalivahana Projects is the privately held flagship group company.
SGEL is into development and operation of renewable energy projects. Its business area include generation and distribution of green energy from biomass, hydro, wind, solar, tidal among other non conventional energy sources.
It also has six subsidiaries in which it holds stakes ranging from 26.8% (Pallavi Power & Mines) to 99.99% (Konark Power Project). Other subsidiaries include Rake Power, Shalivahana (MSW)Green Energy, Shalivahana Solar Energy and Shalivahana Wind Energy.
According to an application filed by SGEL for a government approval for a string of transactions, SIB is currently holding around 33.44% stake representing 14.42 million shares. It is going to transfer 6.4 million shares to Pan Asia. The two year old Singapore fund was formed to invest in infrastructure projects in Asia. It already has few other investments in India including Central UP Gas Ltd, Worlds Window Infrastructure & Logistics and IL&FS Waste Management & Urban Services.
At the same time SGEL is believed to be in the process of making fresh issue which would expand the equity structure from 43.13 million shares to 83.61 million shares. This issue is likely to be made to an investor entity named as Indian Private Equity Fund (IPEF) along with some resident investors which include the promoters of SGEL.
Pan Asia which is picking 6.4 million shares from SIB will hold 7.67% stake of the expanded equity base. Interestingly, SIB fund which holds 33.44% stake currently does not figure in the proposed shareholding structure of the firm and it is not clear what happens to the remaining 8 million shares of SGEL that it would hold after transfering the rest to Pan Asia.
In the proposed equity structure IPEF (who is bringing in Rs 53.94 crore through fresh issue) will hold 34.32 million shares representing 41.05% stake while the resident investors including promoters will have the remaining 51.28%.
It is not clear who is the sponsor of IPEF. Khaleej Investments of Bahrain, which incidentally operates a fund by the name of Indian Private Equity Fund, has denied any involvement in this deal. When contacted, Shalivahana Energy spokesperson declined to comment on the transaction and the parties involved.
