In its second deal in power sector, private equity major Blackstone is investing $300 million or Rs 1,350 crore in Moser Baer Projects. The company is into development of power generation facilities with assets in thermal, solar and hydroelectric power. Moser Baer Projects plan to commission 5,000 MW by 2016 comprising of 4,000 MW of thermal, 500 MW of solar and 500 MW of hydro capacity.
The deal follows Blackstone's Rs 275 crore (approximately $60 million) investment for a 12.5% equity stake in Monnet Power Company, which is developing a 1,050 MW coal fired power plant. The deal is also the largest by the private equity major since it made its first investment in India in 2006.
"Energy sector is an attractive long term investment destination. We believe that an enabling regulatory environment will facilitate greater private sector participation and will pave way for significant capacity addition to the languishing energy infrastructure in the country," said Ratul Puri, Director of Moser Baer Projects.
"Infrastructure development continues to remain one of our key investment themes in India. We believe that they (Moser Baer Projects) have one of the best management teams in the sector and an enviable track record of completing large projects on schedule and on budget. In addition, their strategy of developing assets across multiple fuel sources is compelling. We look forward to help them replicate their success as a manufacturer of optical media and solar panels in building one of India's leading power companies," said Akhil Gupta, Chairman and Managing Director of Blackstone Advisors India.
Edelweiss acted as the exclusive financial advisor to Moser Baer Projects on the transaction.
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