3i India Infra Fund invests Rs 9 bn in Adani Power
3i India Infrastructure, an investment vehicle established by 3i Group, a leading global private equity and venture capital company, invested Rs 9 billion (USD 227 million) for a minority stake in Adani Power, a fully-owned subsidiary of Adani Enterprises.
Adani Power is at present developing an independent 2,640 MW imported coal-based thermal power plant in Gujarat. The project, launched in June 2006, is expected to become operational by 2009 and achieve full capacity by the close of 2010.
Anil Ahuja, managing director and co-head of 3i Asia, said, “India is witnessing phenomenal growth in the power sector, specifically power generation. Through this transaction, we have invested in a landmark power generation asset as well as reaffirmed our confidence in the Adani Group, whose Mundra Port was backed by us in 2005. Adani Group is an extremely competent partner which has demonstrated its ability to conceptualize and execute large-scale infrastructure projects.“
Gautam Adani, chairman of Adani Group, added, “Adani has a strong commitment to power generation. We are planning to generate close to 7,500 MW of power in India by 2015. Towards this, we have already firmed up 2,640 MW project at Mundra and have commenced work for another 2,000 MW phased project at Tiroda in Maharashtra. We see 3i as a committed partner who adds value to our business. I am impressed by 3i`s in-depth understanding of the infrastructure sector, clarity of decision making and speed of execution.“
Shares of the Adani Enterprises gained Rs 31.6, or 4.19%, to settle at Rs 785.7. The total volume of shares traded was 505,672 at the BSE. (Thursday)
