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Sterlite Power buys StanChart stake PE to fully own power transmission biz

Exit will help SCPE make a 100% gain on the investment it made in 2014

Amritha Pillay  |  Mumbai 

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developer Power on Monday said the company bought back a 28.4 per cent stake from private equity (SCPE) in its business. With the Rs 10.10 billion worth transaction, will now own 100 per cent stake in this business. "Power had attracted an investment of Rs 5 billion in 2014 from SCPE, which was the first private foreign investment in the Indian transmission sector," the company said in a media statement. Valued at Rs 10.10 billion, the exit will help SCPE double the investment it made in 2014.

According to the company's website, Power has close to 30 per cent market share in the tariff-based competitive bidding segment for projects. Power has power projects of over 10,000 circuit kilometres and 15,000 MVA in India and Brazil. "With this acquisition, we reiterate our excitement about the unprecedented growth opportunity in the Our track record and superior execution capabilities position us well to capitalise on this opportunity," said Pratik Agarwal, chief executive officer of Power. With the government's focus to ensure power for all by 2019, the country's is witnessing a huge impetus. The past two years have witnessed a significant amount of deal activity with like investing in transmission assets. While the power generation sector struggles with low demand and high costs, the transmission sector has emerged as a source of stable and assured returns.

First Published: Mon, January 29 2018. 18:04 IST
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