Pune-based Sterlite Technologies has entered into an agreement to raise Rs 500 crore (approximately $83 million) from Standard Chartered Private Equity, the private equity arm of Standard Chartered PLC, for its power transmission arm, according to a press release.
VCCircle had first reported the development on June 12.
Sterlite Power Grid Ventures Ltd, the power transmission arm of Sterlite Technologies, will issue convertible securities to Standard Chartered Private Equity for a minority stake, the statement said.
The company sets up and runs electricity transmission projects and is currently developing six transmission projects on a build, own, operate and maintain (BOOM) basis.
The money being raised would be used for its existing as well as new power transmission projects. The investment by Standard Chartered Private Equity is the first foreign investment in India’s power transmission sector, the statement said.
"We believe that our partnership with the Sterlite group, a long-standing and a highly valuable client of Standard Chartered Bank, will help the build-out and the strengthening of the transmission infrastructure in India," said Udai Dhawan, managing director and India head of Standard Chartered Private Equity.
Sterlite Technologies, formerly known as Sterlite Optical Technologies Limited, is into transmission solutions to the power and telecom industries. The company is one of the largest suppliers of optical fibre to overseas markets in China, Europe and Southeast Asia.
It has telecom cable and power transmission conductor plants in Silvassa, Haridwar and Pune and an optical fibre manufacturing plant in Aurangabad.
Shares of the company were trading at Rs 68.4 each on the Bombay Stock Exchange, up 1.03 per cent in a strong Mumbai market on Monday.
(Edited by Joby Puthuparampil Johnson)