London-listed private equity firm 3i and emerging markets specialist Actis are reportedly in the running for a stake of between 20 percent and 25 percent in Indian power company Ind-Barath Power Infra.
3i is the leader in the race to acquire the stake for approximately $100 million, according to news provider ISI Emerging Markets.
Actis could not be reached for comment and 3i did not respond to requests for comment at press time.
Based in Hyderabad, Ind-Barath Power Infra is a power generation company, which develops and operates power projects that use various fuel sources. The company has operations primarily in Maharashtra, Tamil Nadu, Karnataka and Orissa. It currently has three projects in the pipeline in Karwar, Konkan and the IB Valley.
Other private equity firms such as Citi Venture Capital International and UTI Ventures have previously invested a combined INR2.9 ($60 million; €42 million) in the company.
3i-backed Indian power company Adani Power saw its initial public offering (IPO) in early August oversubscribed 21.64 times. The firm invested $227 million the company in 2008. This February, 3i invested $161 million for a minority stake in the Krishnapatnam Port Company. Both investments were made from the firm’s $1.2 billion 3i India Infrastructure Fund.