Renewable energy major Bhoruka Power Corporation plans to raise second round of private equity investments in the next year in a bid to increase its installed power generating capacity in renewable energy sector to 300 mw by 2012, a top official of the company said.
Talking to FE, S Chandrasekhar, managing director of Bhoruka, said the company had received an investment of $18 million at the end of 2007 from Darby Overseas Investments, the private equity arm of Franklin Templeton Investments and a leading provider of private equity and mezzanine capital in emerging markets. ?Now we are looking to raise around $20 million in the second half of the next year to increase the company?s capacity to 300 mw,? Chandrasekhar said.
While declining to divulge the details of the potential PE player that would invest in the company, he said, ?We are trying to restrict total PE investments in the company to around Rs 150 crore.? He said the company would negotiate with some of the leading PE players including Franklin Templton in the first quarter of next fiscal.
In fact, Darby had invested in the company in the form of convertible debenture bonds, which will be converted into equity shares at a later date when the company goes for Initial Public Offering (IPO). The conversion price will be decided at the time of IPO, which was planned during 2010. The company, which currently generates around 100 mw of power through wind and hydel route, is in the process of adding another 100 mw by 2010, he added.