Report: KKR in INR2.17bn pre-IPO grab

The US firm has reportedly added to its stable of Indian assets with a 9 percent stake in Avantha Power and Infrastructure.

Kohlberg Kravis Roberts has bought a 9 percent stake in Avantha Power and Infrastructure for INR2.17 billion (€35.79million; $48.8 million), according to a report in the Economic Times.

Citing anonymous sources which valued the company at INR24.5 billion, the Times also noted that the deal was part of a INR12.5 billion pre-IPO placement, and that “since placement to KKR took place at INR34 per share, the pricing of the proposed IPO will also be at a similar price”.

Avantha Power is a power generation company with 191 MW of operational thermal power capacity; 2,400 MW of generating capacity under various stages of implementation; and 1,320 MW of generating capacity under planning spread across India. The company currently operates four plants in Ballarpur, Bhigwan, Yamuna Nagar and Sewa. It also has three additional plants currently under implementation in Chhattisgarh, Madhya Pradesh and Gujarat.

India features prominently on KKR’s agenda. In August, the firm underlined its ambitions in the country when it hired former Goldman Sachs managing director Heramb Hajarnavis to bolster its Mumbai office.

KKR is also reportedly bidding against peers such as TPG, Bain Capital and The Carlyle Group for a stake in Indian motorcycle manufacturer Hero Honda and Warburg Pincus, ChrysCapital and Bain Capital for software manufacturer QuEST Global.

Currently, the firm’s Indian interests include stakes in Aricent, a technology services company it acquired in 2006, Cafe Coffee Day and Dalmia Cement (Bharat).