IDFC Private Equity is close to investing Rs 350 crore in Essar Power. The deal is expected to be inked anytime now, a senior executive close to the development told Hindustan Times.
“The deal is at the finalisation stage with all due diligence in place,” the executive, who wished to remain anonymous, said.
The investment will be the first private equity induction by the Ruia-controlled Essar Power to part finance its ongoing projects.
“The discussions are being led by Anshuman Ruia of Essar Group and MK Sinha of IDFC,” the executive said.
While an Essar Power spokesperson declined to comment on the transaction, Luis Miranda, president and CEO, IDFC PE, denied any such development.
The investment of Rs 350 crore is one third of the total equity that has gone into the project so far.
Essar Power is in the process of implementing 5,000 mega watt (MW) power plant over the next four years and it has already implemented projects of 1,140 MW at an estimated expenditure of Rs 4,000 crore. Of this, Rs 1,000 crore is the promoters’ equity.
“PE funds have activated their India arms to look out for value deals in the country’s power sector with a view that this would be a growth driver in the coming years,” an industry source said.
He also said that sovereign wealth funds (SWFs) in Kuwait and Abu Dhabi and PE players like Temasek, Blackstone and Carlyl are in the process of exploring deals in the power sector within the country.