India's Deep Industries raises $20m from Tridevi

Tridevi will purchase compulsorily convertible debentures in Deep's subsidiary Prabha Energy (PEPL), giving it a 40% stake upon their conversion to equity shares and valuing PEPL at $50 million. The new capital will mainly be used to develop a coal bed methane (CBM) block in Jharkhand in which PEPL holds a 25% interest.

The deal may be the first investment by a private equity firm in India's CBM sector, according to a release. CBM captures methane that is chemically bonded to coal deposits, which would otherwise be vented into the atmosphere during mining operations due to safety risks. It has risen in popularity in recent years in a number of markets with improvements in technology that allow recovery of gas with low levels of contaminants.

Deep provides exploration and production services in oil and gas aimed both at the Indian market and overseas through its subsidiary Deep Energy. It formed PEPL in 2009 to pursue conventional and non-conventional methods for electricity generation.

Tridevi was founded in 2010 and invests in infrastructure development, natural resources, energy and consumer growth in India, Africa and other emerging markets. The firm targets private and public companies and also seeks buyout and joint venture opportunities.

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• Topics
• South Asia
• Infrastructure
• PIPEs
• India
• energy