Indian firm Moser Baer Projects (MBPIL) is planning to raise up to INR7 billion (€113.2 million; $156.7 million) to support an investment in a thermal business project by its subsidiary Moser Baer Power & Infrastructure (MBPPL), a source close to the company told Infrastructure Investor.
The company will soon hold talks with various private equity players for raising funds in MBPPL, the source said.
MBPIL focuses on the power sector including power generation, transmission and distribution. The company also has a pipeline of thermal, solar and hydroelectric power projects. Any details of the project have not been disclosed yet.
Meanwhile, Ratul Puri, a director at MBPPL, told Indian media that the company is looking to raise fresh funds from private equity players before the end of the fiscal year. He also mentioned that the amount raised will go towards the project cost for a thermal venture.
In August, alternative investment firm Blackstone Group invested $300 million in MBPPL to support the firm's expansion plans.
Reports suggest that Moser Baer wants to raise a total of INR30 billion to build power plants generating 5,000 megawatts by 2016. More than three-quarters of this amount will be met through debt, with the remainder to come from the company's founders and private equity firms.
Moser Baer has currently raised a total of INR4.7 billion in debt and INR 2 billion in equity, including the funds from Blackstone, according to local media reports. The company has also achieved financial close on power projects generating 1,220 megawatts.