Private equity firm the Blackstone Group will invest Rs13.5 billion (around $300 million) in Indian private sector company Moser Baer Projects.
Moser Baer Projects is a developer of power generation facilities with a pipeline of thermal, solar and hydroelectric power projects. It was founded by Deepak Puri and Ratul Puri, who are also the founders of Moser Baer India.
Delhi-based Moser Baer India was established in 1983 and grew to become the world’s second-largest manufacturer of optical storage media like CDs and DVDs. Moser Baer India has extensive experience in raising private equity. In 2000, Warburg Pincus invested $62 million as the lead investor in a $77 million financing round to partially fund the company’s expansion plans for CD-ROMs. Warburg Pincus topped up its investment in 2002 and again in 2004.
In 2007, Moser Baer Photovoltaic, a wholly-owned subsidiary of Moser Baer India, raised $100 million from a consortium of investors, including Infrastructure Development Finance Company (IDFC), GIC Special Investments and CDC group.
Moser Baer Projects is also based out of Delhi. It is engaged in the development of power assets and has plans to commission 5,000MW of power generation facilities by 2016, comprising 4,000MW of thermal, 500MW of solar and 500MW of hydro capacity. Its most advanced thermal power plant is based in Madhya Pradesh and has already achieved financial closure and acquired fuel linkage. Moser Baer Power also has in its portfolio multiple solar projects in India in advanced stages of construction, while its first solar project outside India was completed in Germany in December last year.
“We have been studying the Indian power sector for over a year and are excited to partner with Moser Baer,” said Akhil Gupta, chairman and managing director of Blackstone Advisors India in a written statement. “We believe that they have an enviable track record of completing large projects on schedule and on budget. In addition, their strategy of developing assets across multiple fuel sources is compelling. We look forward to help them replicate their success as a manufacturer of optical media and solar panels in building one of India’s leading power companies.”
Blackstone did not disclose what percentage stake it would get for its $300 million investment. However, sources said it was a “significant minority stake with board representation”.
Local investment bank Edelweiss Capital was the exclusive financial advisor to Moser Baer Power on the transaction.
