Infrastructure India PLC (IIP), the Infrastructure fund listed with the London Stock Exchange has acquired another exchange-listed firm, Indian Energy Plc., which owns and operates two wind farms in India.
MMB Legal advised IIP with a team led by Partners Mahesh Madan Bhat and Talha Salaria.
Taylor Wessing acted as International legal counsel for IIP with a team led by Partner Tandeep Minhas along with Senior Associate Edward Hooper and Associate Katie Bennett.
Covington & Burling LLP advised Indian Energy. The London-based Covington team was led by Partner Simon Amies along with Associates Brett Hopcroft and Alexandra Smith.
The all-stock deal for the acquisition of Indian Energy is valued at £7.9 million ($13 million or Rs. 57.2 crore). The deal ensures that the shareholders of Indian Energy will get 8.07 percent stake in IIP, which is backed by Guggenheim Global Infrastructure, according to VCCircle.
According to Taylor Wessing, through this acquisition, IIP has further diversified its investment portfolio with exposure to the wind capital markets in India, creating additional opportunities for income generation and capital growth.
“Given the skewed demand-supply ratio for electricity in India, investing in non-conventional energy sources, especially the wind energy sector (which also has state sponsored incentives), is an attractive proposition for investors. It is just a matter of time before other opportunities are exploited for tapping wind energy, without having to spend substantial amounts on infrastructure development i.e. by utilizing existing infrastructure (such as mobile towers, electricity poles etc.), especially for captive requirements” said Talha Salaria, Partner, MMB Legal.
Earlier this year, IIP had raised £33 million (Rs. 240 crore) and had acquired two companies - India Hydropower Development Company and Vikram Logistic & Maritime Services that were initially backed by Guggenheim Global Infrastructure (GGIC).
IIP has recently invested £16.5 million (Rs. 122 crore) in the MW Corp Group-promoted Shree Maheshwar Hydel Power Corporation (SMHPCL). This was IIP’s second round of investment in SMHPCL. Earlier, IIP had invested in the project in 2008. It now holds 17.7 percent in SMHPCL.