Macquarie Infrastructure invests Rs780 crore in Ind Barath Power unit

Mumbai: Ind Barath Power Infra Ltd (IBPIL), a Hyderabad-based power producer, on Wednesday said Macquarie Infrastructure & Real Assets (MIRA) has invested Rs.780 crore in its Ind Barath Energy Utkal Ltd unit.

The deal has helped 3i Capital and PTC Financial Services exit the company and raised money to develop a 700 MW thermal project in Orissa, IBPIL said in a press release.

On 27 July, Mint reported that MIRA, which manages over $100 billion in global assets through various funds, is set to close its second investment in India this year in IBPIL’s subsidiary.

IBPIL is a diversified power generator operating both conventional and non-conventional projects. The group has an aggregate operating capacity of 1065 MW and under construction capacity of 1160 MW to be commissioned in the near future.

3i Capital and PTC Financial Services invested Rs.200 crore and Rs.105 crore respectively in 2011. Ind Barath Energy Utkal is situated in Jharsuguda, Orissa.

“IBPIL has historically attracted investment from leading venture capital and private equity investors including TRG (previously known as Citi Venture Corp), Sequoia Capital and Bessemer Venture Partners & Ascent Capital. IBPIL has a strong record of providing a profitable return to its past investors, including Goldman Sachs, PTC Financial Services, 3i Capital, JP Morgan & Bank of America Merrill Lynch,” the release said.

Investec India was the sole financial adviser to the transaction.

“This gives us immense confidence in our ability to create value even in the toughest regulatory scenario. This transaction too has resulted in substantial value creation for us as well as our investing partners,” said K. Raghu Ramakrishnam Raju, chairman and managing director of IBPIL.

In December 2014, Mint had reported that IBPIL was looking to raise Rs.1,000-1,500 crore through a public listing to provide an exit to some of its existing investors. The firm, however, has not gone ahead with the plan yet.

This will be the second Indian transaction for Macquarie this year. In July, Malaysian firm IJM Corp. Bhd entered into a conditional share purchase agreement to sell its stake in Swarna Tollway Pvt. Ltd to MAIF Investments India, an investment vehicle of Macquaire, through its various subsidiaries for a total consideration of Rs.1,003 crore. The disclosure was made by IJM Corp. to the Malaysian stock exchange.

Till 2013, Macquarie invested in India through two infrastructure funds, Macquarie-SBI Infrastructure Fund (MSIF) and SBI-Macquarie Infrastructure Trust (SMIT), joint ventures between State Bank of India, Macquarie and International Finance Corp. MSIF and SMIT have committed capital of approximately $910 million and $260 million, respectively.

According to data from VCCEdge, the funds made two investments in 2013, acquiring a 74% stake in GMR Jadcherla Expressways Ltd for Rs.206 crore and Trichy Tollways Pvt. Ltd for almost Rs.275 crore. The funds haven’t made any investment since then.

Other investments of these funds include GMR Airports, Viom Networks and Adhunik Power and Natural Resources Ltd.

 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.