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Caparo Energy (India) Ltd today announced it has secured $78.5 million (Rs 350 crore) as mezzanine financing from The India Infrastructure Fund.
The financing is in the form of preference shares with a six-year term and forms part of the company equity. Caparo hinted it is at an advanced stage to raise $33.5 million (Rs 150 crore) on similar terms.
The company announced plans to set up 1,000-MW power project in phase one through a series of wind energy farms. By closing this funding, Caparo would raise about Rs 500 crore, apart from earlier fund of Rs 350 crore. Along with its resources, it would be able to set up 700 MW of wind projects, the company said.
Caparo Energy (India) Ltd is an wholly-owned subsidiary of the AIM-listed Caparo Energy Ltd. Its early investors include Henderson, Eton Park, Capital International and Black Rock. The India Infrastructure Fund is managed by IDFC Project Equity Company Ltd.
Mr Ravi Kailas, Chief Executive Officer of Caparo Energy, said in a statement: “The commissioning of the first project and the funding are two important milestones. With this, the company is in a position to fund approximately 700 MW of projects, with no further equity dilution.”
Mr Vikram Kailas, Chief Financial Officer of Caparo, told Business Line : “We will soon close funding of Rs 500 crore ($112 million) more in due course. This will close the equity component. In all, we expect to raise about Rs 5,000 crore. Of this, Rs 1,200 crore is the equity component, the balance being debt.”
Providing business highlights, the company said it has agreements with Suzlon for 750 MW to be delivered by March 2013. The new proposed 750 MW capacity covers Gujarat (300 MW), Andhra Pradesh (100 MW), Maharashtra (100 MW), Rajasthan (75 MW), Karnataka (100 MW) and Tamil Nadu (75 MW).
The company has arrangements with Suzlon and Gamesa for wind turbine supplies.
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