Indian power company receives $100m

Bessemer Venture Partners has acquired a minority stake in Ind-Barath Power Infra. Citi Venture Capital International and Sequoia Capital are reportedly the other investors to have participated in the $100 million transaction.

Ind-Barath Power Infra has received an investment of $100 million from a group of private equity firms including Bessemer Venture Partners and reportedly Sequoia Capital and Citi Venture Capital International (CVCI).

Together the private equity firms have acquired a stake of 18 percent in the company. News of the investment first appeared in Indian daily The Economic Times. Bessemer confirmed the report of its investment. Sequoia Capital declined to comment. CVCI did not respond to a request for comment by press time.

This is the company's second round of private equity financing. In 2007, CVCI along with Indian private equity firm UTI Ventures invested INR2.9 billion ($61.2 million; €41.5 million) in Ind-Barath.

Ind-Barath is an infrastructure development company focused primarily on establishing small- and medium-sized gas, hydro, bio-mass and coal power projects various states in India. The company will use the proceeds of the second-round funding for new projects, K Raghu, chairman of Ind-Barath Power Infra, told The Economic Times.

In August earlier this year, a report in news provider ISI Emerging Markets had suggested that 3i and Actis were in the running for a stake of between 20 percent and 25 percent in the company.

Some of Bessemer’s transactions in India include investments in NetAmbit, a financial products distribution company; Tulip Telecom, a data communication services provider; and Venus Remedies, a pharmaceutical manufacturer. Since 2004, the firm, which has an office in Mumbai, has invested in more than 21 Indian companies. The firm is investing in India from Bessemer Venture Partners VII, a $1.35 billion global fund.

CVCI, which is currently investing from the $4.3 billion CVCI Growth Fund II, has invested more than $1 billion in India so far. A few of its investments include retail stock broking firm Sharekhan; Suzlon Energy, a wind turbine manufacturer; You Telecom, a broadband internet service provider; and Emaar MGF, a real estate development joint venture of Dubai’s Emaar Properties and India’s MGF Development. In India, the firm is based in Mumbai.

Sequoia Capital manages approximately $1.8 billion in India-dedicated funds, the most recent of which is a $725 million growth capital fund that closed in August 2008. The firm's Indian offices are located in Mumbai, Bangalore and New Delhi.