IDFC Project Equity Co Ltd is investing $54 Mn in Adhunik Power and Natural Resources Ltd for a 27% stake, valuing the company at $192 Mn. Adhunik will use the proceeds to part finance its ongoing 540 megawatt coal based merchant power project in Jamshedpur. The investment was made through IDFC India Infrastructure Fund.
Adhunik will issue convertible debentures which will be converted into equity in 2012.
The power project cost of $566 Mn is being funded through a debt-equity mix of 3:1 and is expected to commence power generation from January 2012 onwards.
IDFC Project Equity Co Ltd is the PE arm of IDFC Ltd with over $927 Mn under management. It invests in energy and utilities, transportation, telecom, urban infrastructure and education sectors.
This is IDFC's fourth investment in 2009. Earlier this year, it invested in GMR Kamalanga Energy Ltd($33 Mn), Ashoka Highways(Durg) Ltd, Sabarmati Gas Ltd and Essar Power Ltd($67.1 Mn).
Adhunik Power and Natural Resources Ltd is a subsidiary of Adhunik Metaliks Ltd. The company was formed in 2005 and is based in Jamshedpur. Adhunik Metaliks currently holds 98% stake in the subsidiary.
Earlier in Oct, Ind-Barath Power Infra Ltd raised $100 Mn from Sequoia Capital India, Bessemer Venture Partners and Citi Venture Capital International. The PE firms got an 18% stake in the power generation company,valuing it at which is valued at over $550 Mn.
