IL&FS Investment Managers Ltd may invest $100 Mn in Hyderabad-based KVK Energy And Infrastructure Pvt Ltd to part-fund its new and upcoming power projects.

KVK Energy & Infrastructure, with interests in power projects, is the holding arm of KVK Group.

Transaction Reference: Business Standard

KVK Energy had earlier raised Rs.196 Cr from Citigroup’s hedge fund - Old Lane Mauritius III Ltd.

Oldlane had invested in 2007 at Rs.32 per share, while CCPs and CCDs of 2007 were converted into equity shares in 2009 at Rs.136.14 per share.

In 2006, Small Is Beautiful Fund had invested Rs.34 Cr in KVK by subscribing to optionally CCPS, towards investment in one of KVK’s SPV, SV Power Pvt Ltd for its proposed 2x56 MW coal washery rejects power plant in Chattisgarh. CCPS were later redeemed in 2007.

In 2006, KVK Energy bought the holdings of Maruti Finance Pvt Ltd’s in various power geneartion companies, for 31.84 Cr – Rs. 15 Cr by way of issue of equity shares and Rs.16.84 Cr in cash. The holdings include – RVK Energy Pvt Ltd, Kasrgod Power Corporation Ltd, MMS Steel and Power Pvt Ltd, KVK Bio-Energy Pvt Ltd, SV Power Pvt Ltd, Lanco Amarakantak Power Pvt Ltd, KVK Nilachal Power Pvt Ltd and MVK Energy Pvt Ltd.

Maruti Finance Ltd has made a total investment of Rs.37.5 Cr in the company.

KVK Energy has four operational projects with a total capacity of 70 MW and is setting up additional five projects with a total capacity of about 1,550 MW. Here’s the list of it’s power projects:

KVK has recently signed a JV with Midwest Holdings Ltd to explore and develop a coal mine project in Mozambique and with Advaita for developing coal assets in Indonesia.

In 2008, KVK Group had planned to raise $100 Mn through a Mauritius based entity S&S Infrastructure, which inturn was to float an IPO at AIM. S&S Infra was to invest Rs.137.9 Cr for 70.34% stake in KVK and an additional Rs.262 Cr through either convertible debentures or preference shares. But, due to adverse global markets, S&S Infra could not float the issue. As a result, the Rs.400 Cr fund infusion from S&S in KVK, did not materialise.

This will be IL&FS' second investment in the power generation space. It had earlier invested in Hyderabad-based Konaseema Gas Power Ltd (KGPL), through its India Project Development Fund.

Some PE deals this year in the power generation space include.

Following power generation companies have planned for PE Funding

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