IDFC Private Equity, the private equity arm of India’s Infrastructure Development Finance Company, has invested INR2 billion Indian rupees ($42 million) in Deepak Cables, an aluminium conductor wire manufacturer.
This follows an earlier round of investment by UTI Ventures, an India-focused private equity firm, which injected INR850 million into the company.
Established in 1982, Bangalore-based Deepak Cables has two aluminium conductor manufacturing plants in Tumkur and Pondicherry. It has also evolved into an engineering, procurement and construction contractor providing power transmission and distribution. The company currently has most of its projects in the states of Karnataka and Maharashtra.
Deepak Cables will use the investment to scale up its business and to enter into new areas of power transmission and distribution.
IDFC Private Equity is currently investing from IDFC Private Equity Fund III, which closed on $700 million earlier this year. The firm has assets under management of more than $1.3 billion.
In September, the firm struck its first deal from Fund III when it backed Indian wind turbine manufacturer SE Forge with an investment of INR4 billion.
UTI Ventures made the investment out of the $180 million Ascent India Fund, which closed in 2006. The fund has made 18 investments and is now fully invested, a source close to the firm said.