GVK to divest 21.1-% stake for Rs1,200 crore
08 Nov 2010
Infrastructure major, GVK Power and Infrastructure (GVKPIL), will raise Rs 1,200 crore with divestment of a 21.1 per cent stake in its wholly-owned subsidiary, GVK Energy.
Private equity fund 3i's India Infrastructure Fund will be leading the investment of Rs1,200 crore and the agreement to the effect was signed today, according to the company.
The infrastructure major's power portfolio comprises 909 MW of operational capacity with a further 4,200 MW under various implementation stages.
According to chairman G V Krishna Reddy, the transaction was an indicator of GVK's ability to create value in its business for the benefit of stakeholders.
According to 3i Asia head and managing director Anil Ahuja, who was explaining the rationale for investment, GVK was well positioned to take advantage of the demand for power in India which was growing strongly.
Analysts, say the appetite of private equity players are now increasingly bullish on areas such as roads, power, ports, logistics and energy, as they bet on rapid growth of the Indian economy that will fuel demand for infrastructure in the years ahead.
Meanwhile, growth outlook for the third-largest economy remains strong, according to the International Monetary Fund says the emerging economies are set to expand nearly three times faster than rich nations.
