Actis, GIC will invest Rs698 cr in GVK Energy

GVK Power & Infrastructure is diluting equity in its energy arm for the second time barely a month after the first deal.

It has entered into an agreement with Actis and an affiliate of the Government of Singapore Investment Corporation (GIC) for Rs698 crore investment in GVK Energy, its wholly owned subsidiary. Actis and GIC would invest Rs349 crore each.

Earlier in November, GVK had sold 21% stake to 3i Infrastructure in GVK Energy for about Rs1,200 crore. With the latest funding, the overall PE investment in GVK Energy has gone up to Rs1,498 crore and the overall dilution would be about 24.97%.

According to a company statement, Actis and GIC’s affiliate will bring in Rs218 crore each as the first tranche of investment.
GVK’s power portfolio comprises an operational capacity of 909 mw and 4200 mw under various stages of development.

Actis is an emerging markets private equity investor with $4.7 billion under management. GIC is a global investment management company established in 1981 to manage Singapore’s foreign reserves.

GVK is amongst India’s largest infrastructure developers with experience and expertise spanning areas including energy, airports, roads and urban infrastructure. As on date GVK has invested over Rs 10,786.02 crore into infrastructure projects with projects in the pipeline worth over Rs25,000 crore.

G V Krishna Reddy, chairman, GVK Power & Infra, said, “GVK has been a pioneer in the infrastructure sector in India. While this strategic transaction will enable GVK Energy to deploy further capital we believe that both Actis and GIC will prove to be ideal partners in the next phase of the growth.” 

Michael Till, partner and co-head of Actis’s Infrastructure business, said, “By investing in such a well-established, highly-respected business as GVK Energy, Actis is helping secure Indian’s current and future energy needs. We are delighted to be part of this important investment.”