GVK Energy may raise Rs 1,500 cr through PE funds

Following the restructure of the power generation assets of GVK Power and Infrastructure Ltd (GVKPIL) and consolidating them into GVK Energy Ltd, a sub-holding company, the management is in talks to raise about Rs 1,500 crore through a placement to a private equity.

This move is aimed to meet the equity component of the funding requirement of the company's expansion projects now under way, including the expansion of GVK Jegrupadu and GVK Gauthami, both gas-based projects in Andhra Pradesh and another unit at Goindwal Sahib.

The company Chairman, Mr G.V.K. Reddy, during a recent meeting with said, “Several players are interested to partner n the company growth story. But no decision has been taken. Depending upon the requirement, we could consider.”

With the regulatory environment conducive for foreign direct investment – 100 per cent is allowed into the power sector – and the permission to establish merchant power projects in the country, several investors are scouting for opportunities for investments.