Actis, GIC each to invest 349 cr in GVK Energy

NEW DELHI: Private equity firm Actis and an affiliate of government of Singapore Investment Corporation will each invest Rs 349 crore in GVK Power and Infrastructure's energy subsidiary, the infrastructure developer said in a press statement on Thursday.
According to the pact, the two investors would initially invest Rs 218 crore each. The company did not disclose the timeline for the balance investment.

This is the second round of equity investment in the subsidiary, GVK Energy, in less than two months. In November, 3i Infrastructure Fund had invested Rs 1200 crore in it for 21.1% equity stake. With these deals, the promoter company has diluted almost 25% in GVK Energy.

Hyderabad-headquartered GVK has an operational power generation capacity of 909 mw. The company has projects aggregating to 4,200 mw under various stages of development.

"While this strategic transaction will enable GVK Energy to deploy further capital we believe that both Actis and GIC will prove to be ideal partners in the next phase of the company's growth," chairman G V Krishna Reddy was quoted as saying in the statement.