GVK Power to divest 21% in GVK Energy, raise Rs 1,200 cr

Infrastructure major, GVK Power and Infrastructure (GVKPIL), will be raising Rs 1,200 crore by divesting a 21.1 stake in its wholly-owned subsidiary, GVK Energy.

Private equity fund 3i's India Infrastructure Fund will be leading the Rs 1,200 crore investment and an agreement to that effect was signed today, the company said in a release issued here.

GVK's power portfolio comprises operational capacity of 909 MW, with a further 4,200 MW under various stages of development, it added.

"This transaction is an indicator of GVK's ability to create value in its businesses for the benefit of stakeholders," GVKPIL's Chairman, G V Krishna Reddy said.

Explaining its rationale for the investment, 3i Asia Head and Managing Director Anil Ahuja said: "GVK is well positioned to take advantage of the demand for power in India which is growing strongly."

India Infrastructure Fund is a $1.2-billion investment fund, established by PE major, 3i Group.