Kohlberg Kravis & Roberts (KKR), a global private equity firm, has bought a 9 percent stake in Avantha Power & Infrastructure (APIL), an Indian power firm, for INR2.17 billion (€35.1 million; $49.1 million), according to media reports.
The acquisition comes ahead of an initial public offer (IPO) planned by the power company to raise $280 million. Reports suggest that the company has already received an approval from the Securities and Exchange Board of India to launch the share sale.
KKR was not available for comment while a spokesperson for Avantha refused to give any details on the deal.
Reports suggest this transaction forms part of a pre-IPO placement, with KKR’s holding in APIL to be diluted to 6.3 percent after the completion of the IPO that opens on October 11.
Avantha Power and Infrastructure is a power generation company with 191 megawatts of operational thermal power capacity. It has 2,400 megawatts of generating capacity under various stages of implementation and 1,320-megawatts of generating capacity under planning across India.