Mumbai: The Anil Agrawal-run Vendanta Group company Sterlite Power has bought out Standard Chartered Private Equity’s 28.4 per cent stake in its transmission infrastructure business for Rs 1,010 crore, taking full control of the company.
The British lender’s private equity arm, which had invested Rs 500 crore for the stake in 2014, exits the investment with gains of over 100 per cent in the short span.
When they made investment, this was the first foreign PE investment in the country’s power transmission sector.
Sterlite Power group chief executive Pratik Agarwal said Monday in a statement that the company is “proud” to have delivered the “attractive return” to the PE firm.
He said the company is excited about the large growth opportunities in the power transmission sector, and that its execution capabilities and track record will be of help in capitalising on it.
Sterlite Power’s portfolio has grown to 15 projects in India and Brazil, from three projects domestically, during the past three years. Its power transmission infrastructure extends over 10,000 circuit kms and 15,000 Mva in the two countries.
StanC PE had invested Rs 500 crore in the firm in 2014, in what was then the maiden foreign private equity investment in the domestic transmission sector.
StanC PE managing director Udai Dhawan said they had a great relationship during the investment period and is impressed with the company’s management team, execution capabilities and record on corporate governance.
The Vedanta Group company has four business units — infrastructure, solutions, convergence and IndiGrid.
Sterlite Power sets up power transmission line on a BOOM (build, own, operate, and maintain) model and has 13 projects in the country and two in Brazil with a capital commitment of USD 2.5 billion.
Of these, four projects are revenue generating and the rest are in various stages of commissioning.
Its solutions business combines speacilised EPC services and is a leading manufacturer of power cables and conductors, supplying to all major states and private utilities besides exporting to 40 countries.
It has four manufacturing assets in Odisha, Uttarakhand and Dadra & Nagar Haveli.
Sterlite Power is also the sponsor of IndiGrid, the nation’s first power sector Infrastructure Investment Trust (InvIT), listed on the BSE and NSE.
