GVK Energy plans to raise USD 300 mn from PE players

MUMBAI: GVK Power & Infrastructure Ltd's subsidiary GVK Energy plans to raise up to USD 300 million through private equity in the next three to four months, a senior GVK group official said.

"We plan to raise USD 250-300 million towards our expansion plan," Group Vice-Chairman G V Sanjay Reddy told reporters on the sidelines of the inauguration of a new terminal at the Chhatrapati Shivaji International Airport (CSIA) here today.

The money will be raised for funding the expansion plans of GVK Energy's power business and coal mining assets, Reddy said.

"I cannot divulge the amount of equity dilution that will happen. It will depend on the valuations, and we are still talking to private equity players," he said.

The GVK Group led consortium--which has a 74 per cent stake in Mumbai airport--made an investment of around Rs 300 crore in the new 1C terminal that was inaugurated today.

Besides, the GVK Group, which holds a 29 per cent stake in the Bangalore International Airport is planning to expand the existing terminal there to a capacity of 17 million passengers per year by 2014-15 (Apr-Mar).

Investments of Rs 600-700 crore will be made for this expansion project, Reddy said.