India's leading power trading firm, PTC India, has tied up with UK based Ashmore Group for setting up a $ 1 billion (Rs 4,665 crore) private equity fund named India Energy Fund for financing energy projects in the country.
Ashmore is a London Stock Exchange-listed fund manager, with the handling of $24.9 billion of funds worldwide.
Market sources disclosed that a joint venture asset management company (AMC) would be set up shortly by PTC and Ashmore-promoted AEI Energy for managing this private equity fund.
AEI Energy has revenues of $9.2 billion and operations in 19 countries.
“PTC India and Ashmore propose to establish a JV asset management company to raise and invest funds in the energy infrastructure sector in India,” an official from a leading consulting house told Hindustan Times.
When contacted, PTC chairman and managing director T.N. Thakur refused to offer any official comments. Asked about Ashmore’s joining PTC for the fund, Thakur said, “It is premature at this stage to make any comments.”
AEI Energy is expected to hold a majority stake of 60 per cent in the company while PTC will hold the balance 40 per cent. While plans are to sell around 15 per cent stake to investors at a later stage, AEI will continue to be a majority stakeholder in the fund.
Sources said KPMG was assisting PTC to set up the fund, which in the first phase will have a corpus of $500 million, to be contributed partly by PTC and Ashmore and party by way of funds raised from domestic and overseas markets.
The fund would invest towards equity of private and state sector power projects. “It has been decided to pick upto 30 per cent equity in suitable projects, some of which have already been identified by PTC,” a senior company official said.